An undisclosed UK intermediary has been fined for a breach of the Mortgage Code. Although mortgages and associated activities are not due to be regulated until 2004, it is reassuring for consumers that they are still being protected.
A fine of £66,300 has been imposed on the intermediary by the Mortgage Code Compliance Board, for failing to provide suitable advice on an equity release product. The intermediary was fined for failing to ensure that the client was fully aware of and understood the arrangements being made on his behalf. They relied on information from a third party (the original introducer of the business).
The fine, the largest imposed for breach of the code, signifies the importance of the Mortgage Code and that practitioners should take it very seriously. The Mortgage Code Arbitration Scheme who make decisions on complaints for breaches of the Code, found that 45% of cases worked in favour of the customer.