FSA is still missing the point – it should insist advice is given

With regard to the FSA’s latest stipulation that anyone involved in the sale of a mortgage should have a Level 3 qualification, surely it is still missing the point.

All face-to-face mortgage sales should be advised, whether by a broker or a lender.

Obviously, to give advice advisers must have CeMAP or its equivalent, so the FSA has a small victory there.

But insisting on advice would stop banks selling inappropriate products and hide behind the non-advised defence.

When a customer goes into a bank for a mortgage, they expect to receive advice and regardless of what the IDD may say, they believe the bank has provided them with the best product for their needs.

In reality, they may have been sold something that is far from the most suitable.

If banks are unable or unwilling to take on the responsibility, the solution is easy – refer customers to an independent mortgage broker.

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