The Financial Services Authority has written to firms urging them to ensure their lifetime mortgage advice meets required standards ahead of another market review in late 2007.
The letter follows mystery shopping and thematic reviews in 2005 and 2006, which found cases of “unacceptable” advice standards, particularly in firms which transacted low volumes of lifetime mortgage business. The FSA says lifetime mortgages must be fairly sold to customers who have a clear appreciation of the risks and benefits associated with the product. It states: “We expect this letter and actions taken by senior management will lead to an improvement in the quality of advice provided. We will review the situation at the end of 2007 and consider whether any further regulatory actio...
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