Your financial ombudsman service Information
I am an Australian citizen based in the UK and have been looking to purchase a property in Australia in anticipation of my returning home over the next few years. I had initially thought I would apply to my own bank but after speaking with an expatriate friend who recommended I seek the services of a mortgage broker, I did exactly that.
I asked my buddy what one should look out for when retaining the services of a mortgage broker? His advice was to deal with a mortgage broker who is a member of the MFAA. It seems that at this stage in Australia there is no national regulation of mortgage brokers. Western Australia introduced legislation to regulate the activities of mortgage brokers in that State in 2007. The mortgage broker and non-bank lender industry have been lobbying for uniform legislation to avoid the costs and difficulties of meeting different requirements in individual states. Until recently this seemed unlikely but now the Australian Federal Government has received the go ahead from all the states and has undertaken to introduce uniform legislation for the mortgage industry as soon as possible.
In the meantime it is important that when dealing with a mortgage broker you check that he or she is a member of the Mortgage Finance Association of Australia (MFAA) because this body does offer training and requires a mortgage broker to meet specific standards of professionalism in his business. It also requires that mortgage broker members pass certain tests in relation to any legal requirements connected with mortgage broking activity e.g. The Anti-Money Laundering Act, Privacy Act, The Uniform Credit Code.
An added benefit of dealing with a mortgage broker who is a MFAA member is that all members (includes mortgage brokers, non-bank lenders etc) are also members of a recognised dispute resolution entity. In the case of the MFAA, most of its 13000 members are members of COSL (Credit Ombudsman Services Limited). This is an ASIC-approved external dispute resolution scheme (similar to the Financial Ombudsman Scheme) and gives consumers access to a free dispute resolution process should anything not be satisfactory about the services or product provided by a member mortgage broker. In the excitement of purchasing a new home, borrowers can often overlook the detail of their home loan – what are the terms and conditions? Do they give you the flexibility the mortgage broker promised? Is the interest rate the same as initially conveyed to you by the mortgage broker? Do you have an interest only period for up to 5 years so that should circumstances require you can keep your home loan repayments to a minimum and thereby reduce if not avoid the possibility of a default. Some borrowers commit to higher principal and interest payments without really knowing how they will budget Far better to enter an interest only loan and make additional repayments of principal as and when you can afford to – almost all home loan mortgages that are interest only will also allow you to make additional repayments of principal. You should discuss your cash flow position with your mortgage broker so that the home loan applied for is one that you can adequately service. An MFAA mortgage broker should then be well positioned to seek the most appropriate home loan for you.
Article author: jillayne smith
Offshore Investment Guide
This is the first in a series of articles that are not intended to be a definitive technical reference manual. The aim is to convey the essence of each subject summarised, highlighting the majority of advantages and disadvantages attributable to each type of investment. In this way Private Investors can assess the various plus and minus points of the many investment options available to them. This can be achieved at a leisurely pace without any pressure.
When you have read the information related to your own circumstances, you will be able to easily and quickly structure your own profile in line with your individual investment philosophy. Reading these articles will help you learn more about 'Offshore Investing'.
About UK Regulated Financial Advice
The UK Financial Services Act 1986 laid the foundations for what is arguably the most stringent and robustly regulated financial legislation in the world today.
All UK financial advisers and investment institutions must be authorised and regulated by the Financial Services Authority.
Persons that provide financial advice, including homeowner mortgages, must demonstrate their competence by passing the requisite examinations related to the type of financial advice given. Further more, advisers are required to keep up to date with knowledge to demonstrate their 'continuous professional development.
UK financial advisers fall into three main categories:
" Single Tied Agents that represent one investment company
" Multi Tied Agents of a limited number of investment providers
" Independent Financial Advisers (IFA) that have access to the whole market
Advisers are required to provide their full terms of business together with a copy client agreement that must be signed by the client.
Advisers are required to 'know their clients' by obtaining a thorough fact find about the client's circumstances and financial objectives.
Private Investor Protection
There are a number of rigorously enforced complaints procedures that apply to both UK regulated financial advisers and investment/insurance product providers.
The Financial Ombudsman Service (FOS)
The UK FOS deals with all complaints against authorised persons in connection with regulated investment activities. The FOS can award compensation for any loss and/or enforce the respondent to remedy any loss. The maximum compensation is £100,000 plus costs.
The Financial Services Compensation Scheme (FSCS)
The FSCS is empowered to award compensation in relation to:
Protected deposits- Maximum £ 31,700
Protected investments - Maximum £ 48,000
Long term insurance - Minimum 90% (No Maximum)
General insurance &
Investment contracts. - Minimum 90% (No Maximum)
Non UK Regulated Investment Institutions
Ask your adviser about the Regulatory procedures and Compensation schemes related to the offshore jurisdictions where non UK based investment companies are located. The Isle of Man, Jersey and Guernsey have regulatory and financial protection measures similar to the UK. Other locations in Europe such as Switzerland and Lichtenstein have stringent controls to protect client invested assets. Further a field, the USA, Australia, Canada, New Zealand, Hong Kong and Singapore to name but a few also have robust investor protection regimes.
Article author: Shaun Dalton
Creating and Factoring. Structured Settlement Planners and Brokers assist injury victims and lawsuit winners in the process of structuring a financial settlement to pay out over time in a manner best suited to meeting future financial needs. Structured Settlement Factors assist individuals receiving payments over time from a structured settlement in the process of restructuring the payout, usually obtaining an immediate lump sum at a discounted rate.
Wherever you are in the process, there is a wealth of information available on the internet to help you on your way. www.settlementplanners.org is a great resource “to assist injury victims, claimants and attorneys in resolving their legal financial claims, and to advocate the injury victims' right to choose settlement planning advisors and financial and guarantee providers." Their efforts reach all the way to Washington DC, standing in the political and legal arena for the rights of claimants to have the best possible access to financial compensation. The NSSTA is also on the creation side of structured settlements advancing “the use of structured settlements as a means of using periodic payments to resolve personal injury claims, workers compensation, and other types of claims.”
The Factoring side is represented by a handful of funding companies and an army of factoring brokers. While there is a larger organization, referred to as NASP, considered to be the watchdog of the industry, there is very limited information on the organization itself. Structured Settlement factors provide “cash now” for future payments, in essence, restructuring or in some cases, dismantling, the previously approved payout in exchange for a lump sum of cash sooner. The services provided can be timely in the case of dire financial need, but the steep discount is a major drawback for those considering their options. Go to www.ProsperityPartners.com for more information.
Two very different industries, both offering a service to the same group of people, from opposite sides of the product. One group creates structured settlements in the best interests of claimants, the other group factors the current payout to meet immediate financial needs. Whichever service you need, there is plenty of information on the internet to help you along the way.
Jason Rigler
"Settlement Advocate" and consultant for Prosperity Partners Customer Service Department.
Article Source:
ezinearticles.com
