By now your chocolate advent calendars will be half empty, and you will no doubt be looking forward to unwinding with family and friends. I’d love to continue this article with the same seasonal cheer, but I failed to find any in this week’s selection of papers.
The FSA hit squad
I’ve commented previously on the increased activity of the Financial Services Authority (FSA) and this week was no different.
The police and FSA enforcement officers raided the offices of blackandwhite.co.uk, seizing around 20 self-cert case files. The police were there to offer support and to stop employees of the firm leaving with files. However, chief executive of blackandwhite.co.uk, Thomas Reeh, stated that files are backed up every 15 minutes to an external source making it impossible to wipe any files.
This week’s publications also featured other stories about the FSA taking action against brokerages, including its enforcement proceedings against seven firms and orders to another 65 to complete past business reviews after its investigations into mortgage advice.
The FSA also announced that more than a fifth of broker firms it has visited this year have failed to meet the standards for mortgage advice. 345 firms have been reviewed with the seven mentioned above facing action, and countless others still under review. These nationwide reviews focused on four main areas: affordability, self-cert, training and competence and senior management responsibility, and are more than likely to continue into next year.
Without wanting to repeat myself – or prompt early new years resolutions – if you are concerned that your compliance procedures may not tick all the regulator’s boxes then now is definitely time to do something about it.
Role models
The FSA are not the only ones saying ‘Take That’ to underachieving broker firms. MS published an interesting article announcing that the four-strong, 90’s boy band, can be role models for brokers.
The feature applauds the band’s decision to give up on solo projects to concentrate on reforming the band. As a result, Take That are now reaping the benefits. This example is used to illustrate the similarities to the world of secured loans and urges brokers to use specialist master brokers to do their hard work, while they concentrate on what they are good at.
In fact, the extra time they would have spent could provide them with the chance to explore the opportunities the protection market offers in terms of generating income and protecting their client’s lifestyle.
Good news
Regardless of your personal views on the requirements of Home Information Packs (HIPs), and despite some industry individuals questioning the timing of the last stage roll out, it’s great to see that the government has finally followed through the HIPs initiative.
The Communities and Local Government has announced that HIPs will now be required for one and two-bedroom properties, which will enable you to create an additional income stream for your business going into 2008. Some food for thought over Christmas?
Publications Mentioned:
Mortgage Introducer – 1st December 2007
Mortgage Strategy – 3rd December 2007
Financial Adviser – 29th November 2007
