The FSA today proposes to ban non-advised mortgage sales, although all but the 'vulnerable' or those accessing higher-risk products will be able to opt-out of advice or reject it and proceed on an execution-only basis.
The regulator's latest consultation paper as part of its Mortgage Market Review (MMR) suggests all intermediaries must assess product suitability and offer advice whenever there is spoken or other 'interactive' dialogue with buyers. However, with the exception of sale and rent back (SRB) consumers, the regulator proposed those who reject the advice they have been given may still go ahead and purchase the product they want on an execution-only basis. Additionally, high-net-worth individuals and mortgage professionals will be allowed to opt out of advice. 'Interactive' dialogue inclu...
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