View more on these topics

FSA extend guidelines on training and competence

The FSA has proposed that guidelines on training and competence previously set down for lenders will be extended to all firms which advise on or arrange mortgages.

The FSA has already set out its approach to training and compliance in the Training and Competence Sourcebook, which includes commitments to maintaining reasonable levels of responsibility and competence among individuals. In earlier consultations, the regulator concluded that only mortgage lenders and administrators should be subject to the commitment, but a widening of the scope of regulation has led them to reconsider.

The FSA says additional training and competence beyond the Sourcebook commitments will be required for advised sales on standard and higher risk mortgages and non-advised sales using filtered questions for higher risk mortgages.

In CP146 the FSA says: “For all advised sales except lower risk mortgages, we are proposing that the full training and competence regime, including an examination, is appropriate. It is particularly important in advised situations that the adviser is fully competent to undertake his role to ensure that the consumer receives advice on a mortgage that is suitable to his circumstances and is good value.”

For non-advised sales using both filtering questions and execution-only, the FSA propose that only the Commitments will apply, with the exception to equity release/lifetime mortgages. The FSA proposes that the supervisors of staff involved in non-advised lifetime mortgage sales and the individuals who design the filtering questions should have to meet the full training and competence requirements, including an examination.


Brokers get new weapon against delayed payment

Brokerages and other businesses are now able to claim up to £100 in debt recovery costs for overdue payment thanks to new legislation. Small businesses are already allowed to charge interest on late paid bills, and the new right to charge compensation costs aims to make late payers think twice before offering an excuse for […]

Endowment fund reaches 160% guarantee ratio

The Endowment Growth Fund (EGF) advised by TEP market maker PolicyPlus, has achieved a guarantee ratio of 160% of net asset value, despite recent periods of great stock-market volatility. Investors who have made an investment of £100,000 will now be covered by £160,000 of guarantees in sums assured plus attaching bonuses. Since its inception in […]

What will the CML do?

From Shelia McKechnieAn open letter to Michael Coogan, director-general of the CML from the Consumers&#39 AssociationI am sure you are aware of the long-running scandal of usually elderly consumers left with ever-increasing levels of debt accumulated through the mis-selling of equity release schemes, particularly Equity Home Income Plans, in the late 1980s and early 1990s. […]

Pink release new buy-to-let fixed rate

Pink Home Loans has launched a new, exclusive buy-to-let mortgage funded by Mortgage Express. The product is fixed at 5.85% until September 3 2007 and is available up to 85%LTV. Investors can use the exclusive &#39choices&#39 flexible feature to overpay up to double the monthly payment even during the five-year fixed rate period. The overpayment […]

Health - thumbnail

Fit for Work: guidance for employers published

On Friday, the Department for Work and Pensions published its guidance for employers on using the new Fit for Work (FfW) service to help ill employees return to the workplace. It also includes more details on the tax exemption for medical interventions that commenced on 1 January 2015.


News and expert analysis straight to your inbox

Sign up