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No room for misunderstanding in the FSA world, warns AMI.

Intermediaries who do not fully understand the FSA&#39s rules for mortgage advice will face harsher penalties than ever before after Mortgage Day, The Association of Mortgage Intermediaries has warned.

From October 31, intermediaries offering mortgage advice must be fully aware of the new FSA requirements. These requirements go far beyond those that currently exist under the Mortgage Code and firms that fail to implement the changes in time will face enforcement actions ranging from fines to removal from the industry.

To help identify the key areas of change in the sale process, AMI has produced a factsheet for members detailing the many differences between the MCCB and the FSA requirements. Factsheet 12: guide to a compliant sales process provides an outline for firms to use in restructuring their practices along FSA lines.

The factsheet covers the key component parts of the advice process, the understanding of which firms must have come to terms with by the October handover. It includes: financial promotions; initial disclosure and the IDD; the advice process; affordability and suitability; pre-application disclosure; and record keeping.

Chris Cummings, director of AMI says: “Mortgage intermediaries perform an invaluable service for their clients and should be looking to implement the new rules into what they do best, which is providing sound advice for their clients. This factsheet highlights the key points to help them to continue to do this.”


SPF launch equity release scheme for Spanish houses

SPF has launched the first ever product that allows UK owners of Spanish property to release equity up to 80% of the property value. Until now, releasing equity from a Spanish property, where strong property price increases have occurred in recent years, has been almost impossible beyond 40% of the value of the property. The […]

Commonhold threat to landlords

Landlords could become a thing of the past when commonhold, a new form of tenure, is introduced in three weeks&#39 time. With commonhold, owners band together to form an association that draws up rules on how interdependent properties, such as flats in a block, will be managed. And unlike leasehold, there is no need for […]

Genesis offers solution to ARs wanting to go independent

Genesis was the first network to make brokers aware of a problem arising out of the FSA regulations, which stipulate that a broker calling himself independent must offer his clients a whole of market product range and the option to pay a fee for the service provided. Where the client opts to pay a fee […]

Dunfermline more than doubles lending, and doubles in size

Thismeans that it has doubled in size in nine years – from just over £1bnin 1995 to £2bn in 2004. Since the branch network was restructured to provide a closer focus on the customer three years ago, lending has increased from £142m in the first seven months of 2002 to £181m in the same period […]


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