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Regulator plans to get tough with small businesses

The Financial Services Authority is to step up its supervision of small businesses with more intensive action taken against individual firms.

In a speech at the City And Financial Intensive Supervision conference last week, Jon Pain, managing director of supervision at the FSA, says small firms will be supervised through roadshows, visits, workshops and more intensive interventions.

He says the recent banning of 80 brokers for fraud with total fines of more than £1m represents one such intervention. Large firms face more mystery shopping exercises and consumer research by the FSA.

Pain adds: “This approach is not just a battle-hungry FSA looking for confrontation for its own sake. Our message to firms is clear – where necessary we will intervene and we will not be pressurised to back off.

“Firms will be well advised to engage with us in a proactive manner rather than believe they can bull-doze us at the last minute.”


Lenders pay a high price for ignoring the broker channel

It was good to see the story last week that brokers now account for almost two-thirds of all mortgages (Mortgage Strategy Online). I hope lenders see these figures and realise the implication of shutting off a distribution channel as powerful and of such high quality as intermediaries. I hope Mortgage Strategy publishes research based on […]

Brokers rule and lenders will soon be crawling back

The news that two-thirds of all mortgages now come via brokers will hopefully stop some of the negative comments that have been going round and also stop a lot of brokers from throwing in the towel. Brokers have proven to be vital for clients in selecting the most appropriate deals, not just the cheapest headline […]


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