Contents
Last month we asked the industry about its attitude to freedom, fairness and responsibility.The hammers and sickles that adorn this month’s front cover might seem extreme but they symbolise the fi rst step towards restricting individual freedom as was hinted at by the FSA’s Lord Adair Turner last month. “Some fi nancial products and advice may be best
delivered with the help of the state,” he said. This is the fi rst indication that the regulator is more
than happy to manoeuvre consumers to do what it thinks is in their best interests. Freedom of choice no longer exists.We’re witnessing a major shift in economic theory: from the idea that a rational economic man exists who gathers information and makes informed choices; to the idea that people are ruled by emotional, often irrational instincts. The FSA, under the guidance of Lord Turner, appears now to be of the
view that consumers on their own can’t be trusted to make rational, sound, fi nancial decisions. Turner, rightly or wrongly, thinks that consumer decisions are made on the basis of the incentives provided. Which, in his mind, means the consumer view on what is both available and acceptable is whittled down to a limited choice.
But think of this. An individual is offered a cake or apple for lunch. They
choose the cake. If this exact situation was run 100 times over, would the individual ever choose the apple? Unlikely. So is there ever really a choice between the two options? The MMR proposals on responsible lending take this theory to heart. The question we would ask is whether the choice to restrict those incentives should be in the hands of the FSA? It may well be that apples are better for us. An apple a day keeps the doctor
away, or so the saying goes. But does that mean they should take away our right to eat cake? Marie Antoinette would have none of it. And neither will we. It’s in your best interests to respond to CP:10/16 and we will help you to do just that. Send your thoughts to Mortgage Introducer and we will ensure that
we deliver your views as part of our own response to the Financial Serives Authority and make sure your views are heard.
Sarah Davidson, Deputy Editor Issue 25 August 2010 Editor
Nia Williams, 0207 490 0693
Nia@thepublishinggroup.co.uk
Deputy Editor
Sarah Davidson, 020 7490 1365
Sarah@thepublishinggroup.co.uk
Publisher
Robyn Hall, 0207 490 0588
Robyn@thepublishinggroup.co.uk
Advertising Manager Matt Bond, 020 7490 0588
Matt@thepublishinggroup.co.uk
Subscriptions Andrew Goldsmith, 0207 490 0622
Andrew@thepublishinggroup.co.uk
Head of Production
Melanie Jones, 020 8290 4999
melanie@mortgageintroducer.com
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Information carried in Mortgage Introducer is checked for accuracy, but we recommend that you make enquiries and, if necessary, take legal advice before entering into any transactions. Any views or opinions expressed in this magazine are solely those of the author and do not necessarily represent those of The Publishing Group Ltd. All rights reserved in respect of all articles, drawings, photographs etc published in Mortgage Introducer anywhere in the world. Reproduction or imitations of these are expressly forbidden without permission of the publishers. Editorial contribu- tions requiring an answer should be accompanied by a stamped self-addressed envelope. No responsibility can be taken for contributions lost or damaged in the post. Conditions of sale and supply: this periodical is sold subject to the following conditions, namely that it shall not without the prior written consent of the publishers be lent, resold, hired out or otherwise disposed of in a mutilated condition or in any unauthorised cover by way of trade or affi xed to any advertis- ing, literary or pictorial matter whatsoever. All advertising is subject to the terms of our current rate card.
4 News Review 6 Specialist Prime News Review 8 Buy-to-let News Review 10 Equity Release News Review 11 Protection News Review 12 General Insurance News Review 14 Product News Review 15 Sale and Rent Back News Review
16 The Bigger Issue Vote in our poll and see what the experts think
18 First amongst equals A look at the FSA’s CP 10/16 on responsible lending
25 The interview Kensington’s Keith Street under the spotlight
28 Advice is as important as ever The impact of the MMR
30 The devil is in the detail Where does the responsibility for TCF lie?
33 The value of advice Don’t under-value your advice and services
34 Old-school lending There is still a place for old-fashioned lending
36 Commercial news Opinion
38 Commercial News Review Positive reports from the fi rst Commercial Finance Expo
42 Hall of Fame Who is infamous this month?
29x180 PRECISE STRIP
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