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FSA outlines initial disclosure format

The FSA is proposing that firms provide consumers with an initial disclosure document, telling consumers not only what the firm is able to offer them, but also what it cannot.

This is designed to allow the consumer to make an informed decision about whether to use a particular firm before deciding to go ahead with the transaction.

The document will tell the consumer which level of service the firm provides; which lenders the firm deals with; whether the firm charges for its services and, if so, how much; where the firm is an intermediary, whether it will receive commission from the lender; and, if the firm charges a fee, whether and in what circumstances it is refundable if the mortgage does not go ahead.

The FSA&#39s proposed suitability requirement includes an assessment of whether the mortgage is affordable; a requirement to match the different mortgage features to the consumer&#39s needs and circumstances; and an obligation, where several suitable products are identified, to recommend the mortgage that best meets the consumer&#39s needs and circumstances.


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 […]

Correspondent lending written into regulatory plan

Correspondent lending will be regulated after N3, writes Harriet Williams.Classing correspondent lenders as a type of packager, the Treasury said their business would fall under the regulated activity of “arranging”.Nigel Gardner, operations director of Genesis Home Loans, says: “I don&#39t think this announcement will surprise anyone and anyone who thought any part of the mortgage […]

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 […]

Abbey finds self-employment is hard work

The demands of self-employment are taking their toll on the family life of the UK&#39s 3.7 million small business owners, reveals research by Abbey National business. The &#39New Entrepreneurs Report&#39 finds that owners of the UK&#39s small businesses are some of the hardest workers in the country. 80% regularly put in more than the average […]


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