Lending on best advice?
Article Abstract:
The growing inter-relatedness of the mortgage business with the field of investment in the UK has given rise to the question of whether mortgage lending should come under the Financial Services Act. In recent years, it has become almost customary for mortgages to be marketed as part of a package that also includes an investment product. Despite this, mortgage lending has yet to be fully subjected to the same regulations that govern investments. Under the FSA, investment advisers are mandated to provide their clients with the best and most suitable advice. There are those who argue that mortgage lenders should also be made to comply with the FSA's best advice requirement since a mortgage represents a heavy financial commitment. Those opposing this idea maintain that the FSA cannot be extended to mortgage lending since it only addresses investments, whereas mortgages are considered liabilities.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1992
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Flexing your motivational muscles
Article Abstract:
The American practice of providing flexible benefit packages to employees is gradually gaining acceptance in the UK. The 'flex' arrangement gives employees the freedom to choose the benefits they prefer to receive from a 'menu' or to select between two or more different benefit packages. A Dec 1991 survey showed that this practice has already been adopted by 650 UK companies, the biggest of which is Scotland's Scottish & Newcastle Breweries PLC (S&N). Unlike other companies that are interested in flexible benefits as cost cutting tools, S&N has opted for the flex approach because it is cost-neutral to the firm. The company is currently offering the flex package only to its 70 executives. Eventually, it would like to introduce the arrangement to its more than 2,000 salaried employees.
Publication Name: The Accountant's Magazine
Subject: Business
ISSN: 0001-4761
Year: 1992
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