View more on these topics

I’m quitting because of unnessary regulation

I am throwing in the towel as a mortgage and insurance adviser following decades of unnecessary regulation.

I have always insisted that advisers should not be strictly regulated but that products and providers should, to avoid mis-selling.

If a product is good, what the salesman says does not matter. For example, cars that are sold meet the safety and legal standards manufacturers must adhere to but salesmen bear no responsibility for this. Please note, we are not truly advisers, we are salesmen of financial products.

After years of scandals has it never occurred to the Financial Services Authority that if poor products were not permitted nobody could mis-sell them? Permitted products should be suitable for sale and include nothing that disadvantages clients.

The assumption that all will be well if frontline troops are constantly monitored has been proved wrong. For years, product providers, banks and insurers have done what they pleased and now we’re all in a mess.

For me, the last straw was advising a client to port their Halifax product and add another product for 6.99%, only to be told by the client that if they went direct they could get it for 5.84%. The rate difference meant a saving of thousands of pounds over the three-year tie-in. How can a lender get away with charging an extra 3.45% over the period when the proc fee would be 0.4%?

This is not only profiteering, it’s also immoral and an example of the lack of regulation. My conscience will not allow me to mislead clients so I’m off.

Alan Alexander

Former Mortgage Adviser

By email

Recommended

Securitisation market for prime loans back by 2011, says IMLA

Some 75% of intermediary lenders think the securitisation and whole loan sale markets for prime mortgages will be back in action by 2011, shows the Intermediary Mortgage Lenders Association’s latest survey of its members.

Lenders seizing the balance of power in market

While networks, brokers and house buyers have used the hiatus in mortgage activity to strengthen their position for competitive advantage, it appears some lenders are attempting to map out a different and exclusive mortgage market.

Goldsmith Williams offers HIP incentive

Goldsmith Williams, the direct conveyancing firm is launching a special scheme which will enable homeowners to cut the cost of a Home Information Packs by up to £100, driving down the price to £99.

Lord Turner and the Nuremberg defence

Perhaps I’m lucky and have always enjoyed the luxury of believing in what I do and of being able to walk away from a job when I thought that my values were being too sorely tested. That’s why I baulked when I heard the chairman of the Financial Services Authority blaming “political factors” for the […]

Guide

Guide: reporting to the Pensions Regulator — what and when?

Johnson Fleming has published a step-by-step guide demonstrating the importance of record keeping and reporting, and how it can ensure you operate a successful scheme. The guide takes you through some key questions you need to ask and identifies the information you need to obtain. The topics include: why you need to keep records and the benefits of doing this; registering your scheme; what information you need to record to ensure you meet the Pensions Regulator’s requirements; and what items need to be recorded and when.

Newsletter

News and expert analysis straight to your inbox

Sign up