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Industry welcomes Treasury&#39s regulatory changes

Intermediaries have broadly welcomed most aspects of the Treasury&#39s final legislation on the regulation of mortgage advice – especially the exclusion of introducers from the regime.

Patrick Bunton, head of operations and compliance at London & Country, says that rules on introducers and packagers “make perfect sense” and is pleased the Treasury has deferred judgement on the implications of polarisation.

Mike Fitzgerald, sales director at Brentchase Financial Services, says: “I am glad that introducers are outside regulation. We get a tremendous amount of introduced business, but they don&#39t give any advice. If they had been included it would have made a nonsense of the whole thing and would not be to the benefit of the consumer. It will be interesting to see what spin the FSA puts on it.”

And Trevor Youens, director of Flower Independent Financial Advisers, says: “Only those who have contact with the end customer should be regulated, as long as they influence their decision, so introducers should be exempt. I am pleased with this aspect.”

RJ Temple PLC introduces mortgage business to other IFAs. Communications manager Liz Walkington says: “If we are not doing the broking there is no need to regulate us. This is an excellent ruling.”

Charcol senior technical manager Ray Boulger says: “We certainly welcome the concept of regulating mortgage advice. While we will inevitably disagree with some of the regulations, the majority seem very sensible.”

But Mark Osland, director of Fidelius, has mixed feelings and says: “If you regulate everything else then it is daft not to regulate mortgages. But we have a brilliant mortgage industry in this country and I think regulation is more likely to harm than improve it. Regulators don&#39t understand competition, just bureaucracy. They want more paper, we want more freedom. They are mutually exclusive.”


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 […]

Mortgages may come within compensation scheme

The FSA is considering whether to include firms that advise on or arrange mortgages within the Financial Services Compensation Scheme. In CP146, the FSA says “the extent of potential detriment to individuals arising from poor mortgage advice is not trivial”. The FSA seeks comment on the maximum amount of compensation that might apply, and the […]

FSA outlines initial disclosure format

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Scottish Life Mortgages ties up Bristol & West deal

Scottish Life Mortgages (SLM) has announced an exclusive 4.79% discount deal with £1,000 cashback through Bristol & West. The product is available up to 95% LTV at 1.16% below SVR for 48 months with no extended tie-ins. Steve Scholes, director of SLM, says: “Brokers want good discount deals with no extended tie-ins. The £1,000 cashback […]

Why we all need to back the housing underdog

The UK loves an underdog. There is something irresistible about the story of the little guy standing up to the established players and leaving them with a bloody nose, whether it is Henry Cooper putting Muhammad Ali on the mat or the Wallabies trouncing the Kiwis in rugby. At the Conservative Party conference, LendInvest championed […]


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