Mortgage Next is advising intermediaries who are active in the sub-prime market to seek help rather than guess, when it comes to the FSA advertising and promotions rules.
Justine Tomlinson, marketing director at Mortgage Next, says: The FSA has made it clear for a long time that it intended taking a close look at the non-conforming sector.
“There are no excuses, therefore, for the FSA recently having to tell more than 200 mortgage brokers to withdraw or amend misleading advertising.
If brokers are unsure, they should seek clarification from those organisations which are there to help.
“Brokers who are ARs of networks will be in the strongest position, as all advertising has to be compliance checked by their Principle before it is used.
“However, DA brokers can also obtain advice from trade bodies such as AMI which has helpful factsheets downloadable from its website and lenders such as Mortgages plc which has a downloadable guide to regulated advertising.
“Brokers should use these resources rather than guessing and running the risk of getting it wrong.
It is becoming very clear that the FSA is now more than willing to bare its teeth and take action against those brokers who continue to flout the rules.
“I have no doubt that for small firms, network membership will increasingly become an attractive option, as it immediately overcomes these type of regulatory issues.