FSA to investigate sub-prime market in the Autumn

The Financial Services Authority is to follow up the work it did in the sub-prime market in 2005 with a second round of broker visits starting this September.

Robin Gordon Walker, spokesman for the FSA, says: “We will be doing the next round of work into the sub-prime market later this summer, around September. We did look at the market in 2005, and said at the time that we would be doing a follow-up.

“This was supposed to happen in quarter one of 2005, but has been delayed because of other priorities.

He says that the latest investigation will be comparable to the one in 2005, but not exactly the same.

He adds: Last year we found some problematic areas where brokers were not keeping proper records or not recommending products that were suitable for the client.