The Minel Group Limited has been fined £10,500 by the regulator for shortcomings in its sales process for equity release products, having inadequate training and competence procedures in place and poor record-keeping.
The firm also agreed to halt the selling of lifetime mortgages and review and potentially compensate consumers offered advice between 9 November 2004 and 9 December 2005.
Georgina Philippou, head of retail enforcement at the FSA, said: “We remain concerned about higher risk products like lifetime mortgages, and the FSA has been monitoring this aspect of the market since mortgage regulation began. Firms must have appropriate systems and controls in place to ensure that suitable advice is given on these products even where, as in this case, a firm is writing low volumes of business.
“This is the first time we have taken such action against a lifetime mortgage adviser, and the combination of a fine, a past business review, and ceasing all lifetime mortgage business should leave firms in no doubt that the FSA will hold them to account if they fail to treat their customers fairly.”
Jon King, chief executive of Safe Home Income Plans, said: “This is essential in showing the FSA is doing its job. We have been pushing for higher standards of advice. If there has been a mis-selling situation, then it is good to see the FSA has picked it up.”
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