Call for action on compliance

Lead generation firms are calling on the Financial Services Authority and the Association of Mortgage Inter- mediaries to clamp down on non-compliant firms that are giving the sector a bad name.

Leadbay has written to the FSA to clarify whether certain lead generation firms that it will not name are acting compliantly.

Toby Hughes, business development manager at Leadbay, says: “We spend a huge amount of money on compliance and find it extremely irritating that some firms do not adhere to the FSA rules. We are tired of companies saying they are compliant when they are not.”

Samantha Bennett, spokeswoman at the FSA, says firms should pay attention to the FSA’s Financial Promotions Act, which is part of its Treating Customers Fairly initiative.

She says: “We expect regulated firms to deal with companies that comply with the law. It is something we are aware of and it is certainly on our radar, but we are not looking to change our regime at present as the Treasury determines any changes in regulation.”

Nick Chapman, managing director of Leadpoint, says: “I think some companies have bought leads cheaply from Indian companies and the quality of the leads has been poor.

“After speaking to clients, I realised that the lead generation industry has been burnt and firms are tarred with the same brush.”

Chris Cummings, director-general of AMI, says: “We have a good practice guide for brokers available on our website about how to buy leads, and we advise that brokers use it.”

It has been suggested that AMI should launch a generation trade body, but this is beyond its remit, it says.