View more on these topics

FSA to consider mortgage effects of CP121

The FSA will consider the links between CP121 and mortgages as it develops the detail of proposals for mortgage regulation, the Treasury revealed today.

The government admits that the finalising of mortgage regulation ahead of changes to the polarisation regime is “unhelpful timing”.

There was no mention of polarisation in the latest consultation on mortgage regulation.

But the government has noted the concerns of respondents who are determined that the FSA proposals on depolarisation “should not be dealt with in isolation” from those on mortgage regulation.

Brokers are particularly concerned that making the choice between multi-tied, tied and independent for products that fall under depolarisation proposals will affect the way they do mortgage business too.

The Treasury says: “Whilst CP121 is concerned with investment business, market failures highlighted in that consultation could similarly occur in the mortgage market.”

It adds: “Some commentators consider that the number of independent mortgage advisers will fall as many consumers will not be prepared to pay a fee for advice and advisers will not generate enough income to stay in business.”

Recommended

MIFAS launches buying club

Misys IFA Services (MIFAS), has announced the launch of its buying Club for the benefit of its members. The MIFAS Buying Club will provide members with access to discounted products and services for their businesses. It offers products and services from Insight (providers of computer hardware and software products), Parity (IT and management skills training […]

Brokers get new weapon against delayed payment

Brokerages and other businesses are now able to claim up to £100 in debt recovery costs for overdue payment thanks to new legislation. Small businesses are already allowed to charge interest on late paid bills, and the new right to charge compensation costs aims to make late payers think twice before offering an excuse for […]

Professionals must be authorised to give advice

Professionals such as solicitors will need authorisation or appointed representative status if they recommend a particular mortgage product, the Treasury announced today. Most respondents to the Treasury&#39s consultation paper agreed that solicitors undertaking conveyancing should not be required to be authorised merely because they offered general advice to the borrower, but that they should if […]

Mortgages PLC enhances product range

Mortgages PLC has announced major enhancements to its range of products, in particular those targeted at medium and heavy adverse borrowers. The changed products will be available from 19 August 2002. Highlights include: Initial pay rates from 5.00% 1.5% discount extended until October 31 2003 up to 90% LTV (1% on buy-to-let) Rate reductions on […]

Europe: why persist with value today?

By Rob Burnett, Neptune’s Head of European Equities The Neptune European Opportunities Fund remains committed to a value bias. We see a broadening array of opportunities in diversified industries at compelling valuations today. The most complicated part of the market is the European banks. We are currently overweight in this sub-sector as many banks are […]

Newsletter

News and expert analysis straight to your inbox

Sign up