View more on these topics

Lenders urged to take responsibility for design flaws

The Association of Mortgage Intermediaries has called for lenders to take responsibility for any initial flaws in product design.

The call follows the Financial Service Authority’s discussion paper 06/4, which looks to the responsibilities of lenders and distributors for the fair treatment of customers.

AMI’s response to the discussion paper stems from its belief that lenders must not be able to “stand in splendid isolation” apart from problems with product design that arise following the sale of a product.

It also addresses the information gulf that has grown in the industry between lenders and brokers, which AMI says is hindering its members being able to accurately advise their clients.

AMI also reminds brokers to not shirk responsibility from any advice given, subject to the provision of clear information from lenders and insurers.

Rob Griffiths, associate director of AMI, says: “AMI is pleased the FSA has given its views on these respective responsibilities and, in general, supports the division of responsibilities in the paper.

“There are however some areas where we need to ensure there is a clear line between the respective responsibilities.

“We would not wish to see the emergence of action by lenders that intrudes into the client-adviser relationship, or behaviour where the selection process for distributors creates competitive distortion or jeopardises the independence of independent intermediaries.

“AMI intends to explore the responsibilities of mortgage lenders and brokers in the product life-cycle with the intermediary mortgage lenders association.

“We will consider the publication of a joint paper setting out our views at a more detailed level on the responsibilities of both a mortgage lender and intermediary.”

Recommended

Salans appoints sales and marketing specialist

Salans, the brokers’ specialist conveyancer, has appointmed sales and marketing specialist Richard Carson to develop its customer base.Carson has over 20 years experience of the financial sector having worked for 17 years at the Market Harborough as marketing and branch operations manager. After leaving Market Harborough, he became general manager for business development at Mutual […]

Praxis relaunches commercial arm

Praxis has revealed it will be relaunching the commercial arm of its business.The packagers commercial team will offer advice based on the whole market, rather than a pool of lenders.Jason Rodger, business development director with Praxis Commercial, says: We are then able to place business with any commercial lender currently operating in the UK marketplace […]

E-trading system for Nationwide

Nationwide will launch an e-trading system on January 16 to service it and its subsidiary UCB Home Loans.

Threesixty launches TV channel

Threesixty has launched a TV channel to provide its clients with industry news and information.Threesixty TV has been launched in partnership with Asset TV, the online TV company, and provides a selection of industry news and information, an exclusive news channel presented by threesixty staff, as well as televised interviews with fund managers that give […]

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.