Brokers call on FSA to stamp out cold-calling practices

Ramesh Sharma

April 29, 2006

Alliance & Leicester research into cold-calling revealed 64 per cent of intermediaries believed the FSA should do more to stamp out cold-calling.

However, despite the FSA banning cold-calling as part of its regulation of the market, 28 per cent of respondents argued it was still a part of the mortgage market and did not want the regulator to take any action. 8 per cent of the 200 intermediaries asked did not state a response.

Responding to the findings, Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said: “I tend to agree with the findings here that there is more that can be done to stamp out this practice. The prospect of someone who’s not following the FSA’s guidelines on cold-calling, such as an estate agent, may adversely impact on the reputation of the vast majority of those who do. This continues to be a topical issue that will not go away.”

Robin Gordon-Walker, spokesperson at the FSA, said no intermediary firms should view cold-calling as a legitimate part of the market. He said: “The practice of cold-calling has been banned for almost 18 months now, following regulation of the market and intermediaries should be well aware of the rulings and what they can and cannot do. Cold-calling practices are prohibited and should not be seen as just a part of the market, as a percentage of intermediaries in the survey suggest. Firms should already know the rules and requirements.”

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