View more on these topics

FSA raps broker for self-cert failings

The Financial Services Authority has censured Doncaster mortgage broking firm Mortgages Remortgages Ltd for exposing up to 80 of its customers to the risk of self-cert mis-selling.

The case arose from an FSA thematic project looking at the sale of self-certified mortgages.

Between January 2006 and April 2008 the firm failed to make appropriate enquiries about customers’ source of income, expenditure, credit history and debt position, so that it could properly assess the affordability of its recommendations; and failed to demonstrate the plausibility of customers’ declared income and expenditure.

Georgina Philippou, head of retail enforcement at the FSA, says:“At all times, and especially in times of economic difficulty, mortgage brokers need to give suitable advice to ensure that customers are not unduly exposed to financial hardship in the future.

“This is especially important in firms like Mortgages Remortgages who specialise in self-certified mortgages and advise customers who are consolidating debts or have adverse credit histories. The firm’s failings exposed its customers to potentially significant financial detriment by failing to give proper consideration to the long term implications of the products recommended in relation to their financial circumstances.”  

The FSA has taken into account the fact that the firm has agreed to undertake a customer contact and remediation exercise.

In determining the penalty, the FSA has had regard to the financial position of the firm. Were it not for this, and the fact that the firm needs to be able to pay for the customer contact and remediation exercise, the FSA would have sought to impose a financial penalty of £20,000.

Recommended

Mums must make sure of their cover

Mothering Sunday is the one time of the year when we sit back and appreciate the important role mums play in family life.

OFT bans East Yorkshire estate agent

The OFT has issued a prohibition order against an East Yorkshire estate agent banning him from engaging in estate agency work.

Miles set for Blanchflower’s role

Professor David Miles is set to take over from David Blanchflower as an external member of the Monetary Policy Committee.The chancellor, Alistair Darling, announced the appointment, with Professor Miles taking up the position from June 1 2009.Professor Miles has been chief economist at Morgan Stanley since September 2004 and he is also a visiting professor […]

Frexit & contagion risk in Europe

Many commentators have suggested the UK’s exit from the European Union will trigger a domino effect, leading to its eventual break-up. Neptune Head of European Equities Rob Burnett discusses the likelihood of this happening. Click here to read more Important informationInvestment risks Neptune funds may have a high historic volatility rating and past performance is […]

Newsletter

News and expert analysis straight to your inbox

Sign up