MANY of the small to medium mortgage lenders and brokers will be forced out of business once the Fin...
MANY of the small to medium mortgage lenders and brokers will be forced out of business once the Financial Services Authority begins regulating this sector next year, says a report published in the Times.
A study presented by Watson Wyatt suggests that actuaries believe the cost of regulation - more than anything else - will reduce the number of lenders and advisers if they have had problems with their customer service record.
Evidence of a consolidating industry is taken from past regulation of the life insurance sector in the late 80s, when many smaller insurers and financial advisers struggled to cope with the additional costs of regulation.
ANDWHAT better evidence is there than yet another building society merger announcement, continues the Times, as it was Derbyshire Building Society proposing the merger with Clay Cross Building Society.
Around 3,500 Clay Cross customers should receive a windfall of around £100, but it is unclear whether this amount will be taxable.
This is the second small lenders merger in the last two weeks, indicating that consolidation is now seriously under way.
FINANCIAL advisers are voicing their concern that the corporate bond market may be another "bubble" ready to burst, adds the Times.
Around £2bn has flowed into corporate bond unit trust over the last six months, according to figures from the IMA, but the advice now coming from bond managers is either head back into equities or go for higher yield "junk" bonds.
The bubble itself, says commentators in the Times, could be one or two months away, after a disastrous bond auction by the Japanese government yesterday pushed bonds prices down worldwide.
AND SCOTTISH businesses could be forced to pay thousands of pounds in extra taxes to pay for extra securities and improvements in their area, under proposals published by the Scotsman from the Scottish Executive.
Plans unveiled in a paper called "Business Improvement Districts" by the Scottish finance minister Andy Kerr are designed to 'encourage firms and local authorities to collaborate on schemes such as pedestrianisation and removing graffiti".
But firms are angry about the plan because they have been effectively told if they do not agree with the plans - which only need 51% of the local vote - they may still have to contribute at least 50% of the financing anyway if the changes are seen to be beneficial for the majority of people.
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