View more on these topics

Watchdog set for mortgage action

Association of Mortgage Intermediaries director general Chris Cummings has warned the Financial Ombudsman Service against automatically importing misselling lessons from the investment market into the mortgage market.

The call comes after FOS principal ombudsman Tony Boorman told a Council of Mortgage Lenders’ event last week that the FOS would make “significant awards” against poor advice that would aim to put the customer back into the position they would have been in if the poor advice had not been given.

Boorman said: “We see cases where I find it difficult to imagine how the lender could have considered the customer capable of maintaining the required level of payments. It seems that the advice has been more about generating commission or fee income than a fair assessment of the interests of the customer.”

He told delegates in recent months the FOS has seen very high levels of mortgage complaints, with volumes twice what they were a year ago.

Boorman said: “Much as the stockmarket falls earlier in the decade helped expose misselling of investment products, so credit restrictions today will expose doubtful lending practices and poor customer service in the lending sector.”

Cummings says: “I am disappointed by the strength of the Financial Ombudsman Service’s comments, bearing in mind that the market has always been a low complaints’ industry. Putting the consumer back into the position they would have been in, what does that mean? It needs to be careful not to import lessons from the investment market.”

Editor’s View – see


Close transfers 4,200 investments onto Alliance Trust platform

Alliance Trust Savings has completed the transfer of over 4,200 Close Investments Isa, Pep and share plan wrappers to its platform. The open architecture platform allows Close to choose from over 3,000 fund choices as well as trading online, over the telephone or by post. Isa, Pep, Sipp and non-tax advantaged accounts can be consolidated […]

Proof over advice suitability is paramount

The key Budget message for IFAs last week seemed to be around the opportunity to revisit clients’ investment holdings in bonds and assess whether switching into collectives might be appropriate.

Bullivant quits CII for chief role at Annuity Direct

Chartered Insurance Institute deputy director general Bob Bullivant is joining Annuity Direct as chief executive.He will be taking over dayto-day management and business expansion from managing director Stuart Bayliss, who will focus on company development and public policy.Bullivant says : “I have very much enjoyed my role with the CII but the opportunity to take […]

Royal Liver’s Milburn leaving insurance industry

Progress from Royal Liver IFA market manager Andy Milburn is leaving in April after five years with the firm.Milburn says his new role is outside the insurance industry although he has not revealed where he is going.He says: “It is a fantastic job I have done for the past five years and I will always […]

Nigeria cover image - thumbnail

White paper — Nigeria International Insights

Jelf Employee Benefits closely examines healthcare provision and challenges within Nigeria. This will be of particular interest to HR decision makers with employees based in Nigeria, and assesses the environment, risks, facilities and safeguards that are relevant to organisations that are actively deploying expatriate staff in this location.


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