Proc Fees on UK Mortgages To Go?
 Nicola Blackmore wrote an interesting piece over at MoneyMarketing last week regarding the FSA’s consideration of scrapping proc fees.
The article was inspired by comments made by Dan Waters, FSA director of retail policy & conduct risk regarding a new remuneration structure to eliminate product bias in the mortgage industry:
“The retail distribution review aims to reduce the conflicts of interest inherent in remuneration practices in the investment market.”
“The proposal we have put forward and expect to consult on is advisor charging, which ends the setting of commission levels by providers and is intended to deliver a knock-out blow to product bias.”
In theory, this could work for IFAs, but is it the right time for such a significant change when mortgage brokers across the UK are battling just to remain in business?
A handful of readers have left their thoughts and in most cases, very strong opinions ranging from calls for the FSA to be dissolved to standardised proc fees for all mortgage products.
Feel free to share yours… |