Why your PII costs could rocket, if the FSA has its way
Mortgage Solutions | 31 Oct 2011 | 15:56
Robbie Constance
What great news for a Monday. If I take higher level exams do my premiums go down? No. Looks like another attack on the IFA and broker market to me. How many complaints are made and upheld against banks rather than brokers? Be sensible FSA and treat consultants fairly.
Rob
31 Oct 2011 | 16:41
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Sants: Industry wrong to believe its responsibility ends at sale
Mortgage Solutions | 01 Nov 2011 | 15:48
Rachel Dalton
“Sants admitted there is not yet a clear definition of where consumers’ responsibilities end.” Surely he means “start” not “end”?
Rudolph Hucker
01 Nov 2011 | 16:09
“All of the FSA’s research suggested providing lots of information does not improve consumers’ decisions,” Sants said. Well, what a surprise! If they had asked me that before they first introduced all this additional guff we could have saved millions, not to mention countless trees. How many times do they have to introduce something only to later have a startling revelation that it does not work? God save us.
Anonymous
01 Nov 2011 | 16:25
Sants’ comments need contextualising in respect of adviser remuneration. For decades the emphasis has been getting the initial advice right and remuneration in the form of initial commission has reflected this.
However products that can last for a quarter of a century or more will need ongoing review but the consumer must be prepared to pay for it. The best thing about RDR is that it eradicates the old something for nothing mentality. I wouldn’t mind betting there will be consumer groups calling for the return of commission based products as they will not be prepared to pay for/ or afford the new regime.
Duncan Jones
01 Nov 2011 | 16:31
“…..many consumers lack the mathematical skill to understand the information.” Oh and of these how many know how an accumulator bet works? How the benefit system operates or how many points their football team needs out of the next ten games to move up a league. They know enough when it suits them Mr. Sants and if you operated on ‘ground level’ you may possibly see a whole different aspect.
Harry Katz
01 Nov 2011 | 16:33
Words fail me. I have tried to write an articulate response to Hector ‘can I have more responsibility please’ Sants, but failed. We will never understand the agenda of the high and mighty who rule us, but I swear by God Almighty that we and the public are being deceived if we pretend there is no personal responsibility for our actions (i.e. as consumers).
Chris Ridgeway
01 Nov 2011 | 16:43
I have retired from being a self employed mortgage broker for a couple of years now, but I clearly remember constantly trying to react positively to feedback from our own compliance advisors on new FSA thinking/nuances, that then had to be carefully documented in suitability letters.
So much so, that I, like many, gradually built up a core “Word” document of some 30+ pages that could both prompt me and cover every element that might be relevant, before reducing and tailoring it precisely to the actual client. A work of art maybe, but does the client value all the detail? To top it all, I recall one compliance report saying the suitability letter was getting too long, but could not point to any section(s) I could have left out. Good luck guys – clients need you now as much as ever.
Philip
02 Nov 2011 | 15:50
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Letters to the Editor
CML conference: Offset is “not just for the wealthy”
Mortgage Solutions | 03 Nov 2011 | 16:54
David Finlay said recently that Woolwich is now looking at re-introducing the Family Offset, something I suggested to him months ago it should do, and so I am very pleased to see this is now on the agenda. However, as the IT development is unlikely to be done quickly I suspect it will be well into 2012 before Woolwich is in a position to offer this product.
It will remain niche but with constraints on high LTV mortgages likely to continue for the foreseeable future I think the time is right for this product, which is currently only offered by a few building societies and small ones at that apart from Yorkshire.
Ray Boulger
Senior Technical Manager
John Charcol
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Our star letter comes from Henry Ejdelbaum who explains why both teenagers and politicans are disconnected from the real world:
Economic Advisor required – No experience necessary?
Dear Ms Hartley,
What springs to mind when you hear the word politician? Apart from the ‘obvious’ we may think graduate, well educated, articulate and possibly sympathetic to the nation (well, the last one may prove debatable) but one adjective that is generally missing is ‘experienced’ – something that we all know comes with age.
Have you noticed the trend that at each political conference there is a speech by a teenager? All the political parties are the same! It is mind boggling to think that 16 year olds are discussing the economy, the country’s welfare, tuition fees and the job market – and all I find myself asking is why? In the days when there were jobs that needed filling it was not unusual to see “No experience required”. This now seems to be the attitude of the parties when they are selecting candidates, too many of our modern politicians have known no work other than politics, which brings me back to our teenage political gurus who lecture at the conferences.
They have never earned a living, paid tax or brought up kids – both the teenagers and the politicians are disconnected from the ‘real’ world. In fact, one senior politician admitted to our MD recently that he has never filled in a mortgage application form: surely the right man to help supervising the banks?
Regards
Henry Ejdelbaum
ASC Finance for Business
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Thank you for all your letters and comments
From the Mortgage Solutions team
