Brokers have been warned that if they don’t advise on second charge loans they could be running the risk of breaking the Financial Services Authority’s rules on best advice.John Webster, chief executive of Swift Group, says that although more advisers are offering second charge products, he is concerned that those who don’t are failing to treat their clients fairly by providing a full range of options. He adds: “Inter-mediaries who don’t advise on second ch-arge loans should ask whether they are offering their clients best advice.” Consultant Terry Pritchard agrees: “This could be a problem in the future as second charge loans are a better option that remortgaging for some people. For example, someone who has accrued a few arrears on their mortgage but doesn’t want to remortgage to a higher rate could find taking out a secured loan a better option.” Ray Boulger, senior technical manager at John Charcol, says brokers should either advise on second charge loans or refer their clients to someone who does. He says: “At John Charcol we don’t offer second charge loans because they are only suitable for a small percentage of our clients. But because this is a valuable product we refer such cases on to a firm we know can give better advice on second charges.” But he adds: “There is more potential detriment to people incorrectly offered a second charge loan than the other way round.”
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The Financial Services Authority has revealed it will look at the impact of incentives within the financial services industry as one priority in its review of retail distribution. The regulator has outlined five themes that it will take forward in the main phase of the Retail Distribution Review. These include the sustainability of the distribution […]
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Ron Devlin, head of claims division at the Financial Services Compensation Scheme, has been appointed to the FSCS board as an executive director.
Despite the surprises the market always springs on investors, for the Loomis Sayles US Equity Leaders Fund, macro events are not a factor in its own decision making.
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