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Consistent regime wanted

The Treasury has responded to broker demands for more consistent regulatory regimes by agreeing to explore the links between CP121 and mortgages, writes Harriet Williams.

The government admits that the finalising of mortgage regulation ahead of changes to the polarisation regime is “unhelpful timing”. But brokers say the FSA will have enough time to take account of the finalised polarisation regime before drafting final rules for mortgage regulation.

Rod Murdison, proprietor of London-based Murdison & Browning, says: “It is only right that the whole regulatory regime interacts and is understandable to everyone. I&#39m pleased mortgages are outside depolarisation, which will confuse borrowers by giving the impression that some brokers are independent when they are not.”

The Treasury admits the defined payment system could take a heavy toll on brokers&#39 mortgage business.


FSA to boost consumer protection

The FSA intends to introduce a rule on excessive fees for mortgage advice or arranging, similar to the excessive charges rule that exists for investment business. This will set standards for the prevention of high-pressure selling, excessive charges and inducements. The FSA has proposed that a responsible lending rule remains valid for non-advised sales, but […]

Umbrella extended to cover mortgage intermediaries

Intermediaries who advise and arrange regulated mortgage contracts will be covered by the appointed representatives regime from 2004. Last Thursday, the Treasury said respondents to the original consultation document had no fundamental objection to extending the regime to mortgages. But it did say many were concerned with the detailed rules that may surround the regime. […]

Royal Bank of Scotland profits up 15%

The Royal Bank of Scotland Group has reported a 15% increase in profit in its half-year results, although bad debt provisions soared 77% compared to the first six months of 2001. Nonetheless, the group&#39s results are solid overall and went some way to ease fears about bad debts in the UK banking sector. RBoS profits […]

Timetable for mortgage regulation

As shown in the timetable below, the consultation paper on regulating mortgage sales is the first of a series that will set out FSA proposals for regulating mortgage and general insurance sales. The proposals are of two kinds, some relating to firms&#39 conduct during a mortgage transaction, and others relating to firms&#39 ongoing status as […]

India rate cut – more to come?

Kunal Desai, Head of Indian Equities at Neptune Investment Management India’s stockmarket rallied this week following news that the central bank was cutting interest rates more aggressively than expected. Commenting on the rate cuts and what this means for India’s economic growth, Kunal Desai notes that there were two important details in the announcement that have […]


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