THE MINEL GROUP LTD.

Activities and protection

What they can do, and how you are protected

• Give regulated advice FSCS may apply
  A claim for unsuitable advice is itself FSCS-protected, up to the limit that applies to the product you were advised on.
• Manage or trade investments FSCS may apply
  Eligible investment and pension claims are typically FSCS-protected up to £85,000 per person, depending on the product and your circumstances.
• Advise on or arrange mortgages FSCS may apply
  Mortgage advice and arranging may be FSCS-covered, up to the limit that applies.
• Lend or arrange credit No FSCS cover
  Consumer credit is not covered by the FSCS, so there is no compensation scheme if the firm fails.

Check your FSCS cover →

Complaints: You can refer a complaint about this firm to the Financial Ombudsman Service for free, whichever activity it relates to.

Track record

Action taken against them

1 fine in 2007, £10,500 in total. This is part of the official register record and is worth reviewing before going ahead.

• Fined £10,500 on 16 October 2007

  On 16 October 2007 the FSA imposed a financial penalty of £10,500 against The Minel Group Limited (Minel) for failing to comply with Principle 2, Principle 3 and Principle 9 of the FSA's Principles for Businesses and FSA Rules. These breaches relate to Minel's persistent record keeping deficiencies and failure to establish and maintain effective systems and controls in connection with the sale of lifetime mortgage contracts (a form of equity release). 2. Minel is a small mortgage and general insurance intermediary, its main business being commercial and buy-to-let mortgages. Minel has been regulated by the FSA since 31 October 2004. Its authorised business includes advising on and arranging insurance and regulated mortgage contracts. 3. The FSA's Supervision Division (Supervision) visited Minel twice as part of its thematic work on equity release advice. During the first thematic visit on 12 May 2005, Supervision reviewed 5 customer files and found record keeping failings. Supervision debriefed Minel on the conclusion of the visit and sent a letter to Minel detailing its findings, instructing the firm to make improvements. 4. The second thematic visit took place 7 months' later on 23-24 February 2006 when Supervision reviewed 12 customer files. They found that no improvements had been made to Minel's record keeping and, in addition, identified concerns relating to Minel's controls over its lifetime mortgage business and the quality of advice provided. Further, Minel had no specific training and competency procedures for training staff or ensuring effective monitoring of competence. Minel was advised of these findings in June 2006 and required to formalise its cessation of lifetime mortgage business until appropriate systems and controls were in place. Minel was also instructed to review all 12 customer files to assess whether the advice given was suitable and, where this was not the case, appropriate redress was to be given. 5. Minel concluded from its own review that it had treated all customers fairly and that the products selected were suitable for the customers. However, Minel did not speak to any of the customers involved during the review and placed ultimate responsibility on the customers and their solicitors to assess whether the recommended products were appropriate to their needs and circumstances. 6. The matter was referred to the FSA's Enforcement Division (Enforcement) on 21 February 2007. The investigation established that, between 9 November 2004 and 9 December 2005, inadequacies in Minel's systems and controls led to the following failings: (i) insufficient information about customers' personal and financial circumstances was recorded so that it was not possible to demonstrate that customers could afford to enter a lifetime mortgage contract and that the contract was appropriate to their needs. Minel also failed to make sufficient records demonstrating suitability of, and the reasons for, its recommendations. Minel therefore breached MCOB 8.5.22R(1) and failed to act with due skill, care and diligence (in breach of Principle 2); (ii) procedures for controlling its lifetime mortgage business to reduce the risk of mis-selling were not implemented. Minel's failure to implement control systems in relation to its lifetime mortgage business led to the failures detailed above. Minel also failed to implement systems and controls to test the ongoing competence of its lifetime mortgage adviser. As a result Minel was unable to identify and meet the training needs of the adviser. Minel therefore failed to take reasonable care to organise and control its affairs responsibly and effectively (in breach of Principle 3); and (iii) taking into account Minel's record keeping deficiencies and its failure to establish risk management systems for controlling its lifetime mortgage business and to test the ongoing competence of its lifetime mortgage adviser, Minel failed to demonstrate that itd taken reasonable care to ensure the suitability of its advice (in breach of Principle 9). 7. By Executive Stage 1 Settlement the FSA imposed a financial penalty of £10,500 (reduced from £15,000 for early settlement) on Minel. Minel has also appointed a skilled person to conduct a past business review to determine the suitability of its lifetime mortgage recommendations and has also agreed to vary its Part IV permission to cease advising on and arranging lifetime mortgages until it has appropriate systems and controls in place.

Common questions

Frequently asked questions