View more on these topics

FSCS poised for overhaul

The Financial Services Au-thority has deemed the present funding system for the Financial Services Compensation Scheme “not fit for purpose”.

A consultation paper has been published by the FSA, with reforms that would see fundamental revamp of the funding structure.

The scheme would see the finance industry divided into five groups – life and pensions, investments, general insurance, deposits and home finance.

Each group would have two sub-classes, and above the groups would be a general retail pool.

The proposals introduce a model under which the first portion of compensation costs emerging from a particular sub-class of firms is borne by that sub-class alone, while higher costs are shared more widely.

The home finance pool, in which brokers would be classed, would in-clude lenders who lend direct, meaning they too will be mutually responsible for any compensation claims thatmay be made.

The initial portion of costs would fall on the relevant sub-class, the next portion to the relevant group and above that on the general retail pool.

Rob Griffiths, associate director of the Association of Mortgage Intermediaries, says: “For the first time lenders that deal direct will be brought in, which is something we welcome. It is only fair a sector that benefits from the FSCS should contribute to claims.

“We are looking closely at this paper as it seems the maximum liabilities for brokers would go up, meaning brokers’ risk profiles will rise. This is our only concern.”


New scheme allows BTL properties to be sold with tenants in place

A new national scheme launched at the London Stock Exchange yesterday will allow buy-to-let properties to be bought and sold with the tenants in place.Some transactions of this type take place currently, but HomeLet IPEX is the first formal nationwide scheme. It means that landlords will have less risk before they buy a property because […]

CML gives its backing to TCF lender website

The Council of Mortgage Lenders has thrown its weight behind The TCF Lender Forum website in a bid to get the industry to embrace the Treating Customers Fairly initiative before next Saturday’s deadline.

Personal advice spurs saving

Face-to-face financial advice is the key to helping to bridge the UK’s £2.3trillion protection gap, claims Co-operative Insurance. Its research has found personal advice is a key factor in encouraging previous non-savers to get into the savings habit – a process that should be replicated in the protection market.

Rightmove acquires majority stake in

Rightmove has acquired the majority stake in the leading holiday lettings business, Rightmove, with around 80% of all properties for sale in the UK, has been focusing its own holiday lettings service on UK holiday homes. It says the deal will increase visitors to, helping it attract more of the 17 million Britons […]

Can you put a hat on?

By Sarah Scott, marketing consultant You might think the question in the title is a strange one. Perhaps even more so when you learn that it’s one of several asked as part of an assessment for Employment Support Allowance eligibility in the opening scenes of the 2016 film, ‘I, Daniel Blake’. Daniel is a carpenter […]


News and expert analysis straight to your inbox

Sign up