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Advisers prevented from choosing high commission

The FSA&#39s proposed suitability requirement is designed to prevent advisers from recommending mortgages that pay them the highest commission rather than products offering the consumer better value, writes Helen McCormick.

There are two options and the regulator says that “consumers should not be recommended a particular mortgage if the adviser ought to be reasonably aware of another mortgage from the range of mortgages he is basing his advice on that better meets the consumer&#39s needs and circumstances”.

The second option stipulates that, where several mortgages are suitable, “the adviser should recommend the better value mortgage based on the pricing elements that are most important to the consumer (except where the consumer asks for a different mortgage).”

The suitability assessment will not require brokers to make an assessment of the housing market.


Charity takes volunteers to new heights

The national charity Lady Hoare Trust has begun a fundraising appeal to recruit volunteers in the UK to take part in a parachute jump. Lady Hoare Trust&#39s events coordinator Fiona Head says: “Imagine standing at the edge of an open doorway of an aircraft flying at 10,000 feet. Now imagine leaning forward and letting go […]

PMI Europe insures £1.8 billion mortgage credit default swap

PMI Mortgage Insurance Company Limited (PMI Europe) has announced the insurance of a mortgage credit default swap agreement between the KfW group, Germany&#39s leading promotional bank, and Aareal Bank AG, a leading international property bank. PMI Europe is providing a £63.6 million layer of credit protection in connection with the £1.8 billion Aareal Bank mortgage-backed […]

Insurers and police in new partnership to beat insurance cheats

A national agreement between the ABI (Association of British Insurers) and police forces around the country will now enable insurers quickly and easily to obtain information from the police whenever they suspect a fraudulent claim is being made. Insurers will ask the police for further information where there is evidence that fraud has been committed, […]

Housing market enters cooling-off period, claims Rightmove

Rightmove&#39s first ever Real-time Property Report shows that the housing market has entered a natural cooling-off period after the strong growth of the past 12 months. The report found that the rate of growth of asking prices nationally has fallen in four consecutive months, with monthly price inflation declining from 4.5% in April to 0.8% […]


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