FSA fines mortgage broker for cold calling

clock

The Financial Services Authority has fined Capital Mortgage Connections £17,500 for cold calling potential customers and other rule breaches.

An FSA investigation in November 2005 found 85% of CMC's business was generated by cold calling potential customers, a practice which breaches the regulator’s rules. In addition, over 97% of accident, sickness and unemployment (ASU) insurance polices sold by the firm were on a single premium basis. The FSA says CMC failed to treat its customers fairly by being unable to demonstrate it gave appropriate pricing information on the ASU insurance polices it sold or advised customers of the potentially cheaper monthly option. It has instructed CMC to carry out a past business review of all ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Mortgages

Client conundrum: Mortgage overpayments versus investments

Client conundrum: Mortgage overpayments versus investments

1.4 million people will see mortgage deals end this year

Laura Suter
clock 22 February 2023 • 3 min read

Summer economic update: Sunak confirms stamp duty holiday in 'mini-Budget'

Mini Budget

Hannah Godfrey
clock 08 July 2020 • 2 min read

FCA sounds alarm on equity release advice

'Tick-box exercise'

Hannah Godfrey
clock 17 June 2020 • 1 min read