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MBE 2012: FSA concerned over execution-only

Nia Williams

November 14, 2012

Speaking at the Mortgage Business Expo Lynda Blackwell, conduct policy at the Financial Services Authority, said the regulator was hesitant to provide execution-only but it took advice from the market during the MMR consultation and decided to offer the channel to a restricted type of mortgage customer.

However Blackwell admitted the FSA was still concerned about this route to acquiring a mortgage.

She said: “We are concerned that it could be misused so firms must keep evidence that customers who have been offered execution-only meet the requirements.

“It must not be used to circumvent the need for advice.”

The three clear categories of customers who can opt to take out a mortgage on an execution-only basis are mortgage professionals, high net worth individuals and business customers as they are considered to have sufficient understanding of the financial products to make their own decision.

Blackwell said that the FSA will be monitoring use of execution-only to ensure it is being used correctly.


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