View more on these topics

Watchdog fines broker for self-cert failings

The FSA has fined Andrew Jeffreys, trading as Chepstow Financial Services, £10,500 for failures in the sales process for self-certification mortgages.

Jeffreys failed to satisfy the FSA that he had assessed the affordability of recommended mortgage contracts and relied too heavily on customers’ affordability declarations.

The FSA says he did not put in place adequate procedures to counter the risk of his business being used by customers to commit mortgage fraud.

Jeffreys was also unable to demonstrate to the FSA that he carried out training, supervision and monitoring of advisory staff and in some instances he failed to disclose to clients the additional fees payable as a result of his use of packagers to source products.

FSA head of retail enforcement Jonathan Phelan says: “Mortgage brokers are entitled to rely on information provided by customers about their incomes, but asking customers to sign a declaration that they can afford the mortgage repayments does not absolve brokers from taking steps to assess and record whether the recommended contracts are affordable and suitable.

“In all of the client files we reviewed we found that the customers had made false declarations about their incomes, and Mr Jeffreys simply accepted this information at face value. Consequently his business was more at risk of being used to commit mortgage fraud.”


Libor lesson

Is it treating customers fairly when mortgage lenders price tracker rates at very high levels because of the current high levels of Libor? Isn’t the whole point of tracker rates that they reflect the Bank of England’s base rate rather than the lenders’ discounted variable rates? Which lenders were quick to put mortgage rates up when rates went up but slow to reduce them when they travelled lower?

B&W cuts SVR LTV to 90%

Bristol & West has reduced the maximum loan to value of its standard variable rate to 90 per cent across all business channels.

Will commodities come a cropper?

Last month saw the launch of yet another commodities fund, this time from Investec, and another agriculture fund, from Barings. Is the rapid increase in the number of funds in these areas an indication that there is a soft commodities bubble or is there still a convincing argument for long-term investment?

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm