Broker fee free

dunstonh

Yes but then the client receives the KFI & offer from the lender saying no advice given in arranging this product.

That is correct. The lender isnt giving advice. The adviser is. So, the lender's KFI will say no advice.

The "advice" given by the "independent mortgage adviser" has no offer based on the advise given.....this cannot be a compliant file

The fee agreement, the factfind and the recommendation report would say different.

Dan_1976

Does this thread not show us that the FSA made and are probably still making a complete hash out of something that should be very simple!

VIGILANT22

Independant is the most common mistake. (and not that relevant)

Many brokers charge fees and take commission. However, to call themselves an ‘Independent Mortgage Broker' they must offer an option to pay fees only, with all the commission earned being rebated to the customer. Worse still, it means a truly whole of market broker fees-free broker (only taking commission), can't call itself independent, even though it is providing the same advice.

People mistakenly think independent is a term to getting the best advice.

Whole of Market advisers don't have to offer every product on the market, they can work from a panel of lenders who are representative of the market and still call themselves Whole of Market.

If people in the industry don't understand, what chance does the consumer have.

dunstonh

Independent in respect of mortgages is different to independent in respect of IFAs. However, you would "expect" an independent to include non commission paying deals (including direct) whereas you wouldnt expect a whole of market adviser to do it. You wouldnt expect a fees free adviser to include non commission paying deals.

One of the hardest things to get people to realise is that an adviser sells advice. That is what is being paid for. That is where the liability is. How the application is submitted is really a secondary issue and no big deal.

Does this thread not show us that the FSA made and are probably still making a complete hash out of something that should be very simple!

Totally.

VIGILANT22

Dunstonh..you are very well respected on this forum..however when are you going to accept Independence as per the FSA refers to fee structure..Martin Lewis has also stated this in his guide to fee free brokers....

Refer to MCOB if in any doubt

payless

Think we have done the independent/ WOL matter to death before... what I would say it what do you think a consumer thinks these terms mean

VIGILANT22

I think a consumer thinks the same way as dunstonh does regarding
independent. Hence the reason Martin Lewis has posted the meaning of independent...(relates to fee structure)....The FSA are the cause of the confusion....and more to come with RDR

dunstonh

I know the technical meaning. However, in reality the whole point of paying fee basis it to ensure deals that dont pay commmission are included and that includes direct deals. A fee based adviser only looking at commission deals doesnt make any sense. Justifying that to the FSA would be difficult.

Dan_1976

Independent refers to the fact that an adviser is free to advise any mortgage without worrying about how much he will earn. wom is regarding the range of mortgages. This means he/she is free to recommend the non proc fee paying mortgages without worrying about income.

WOM refers to the range of products and not the lenders. I believe and I may be wrong, you can be independent and WOM and not be able to use all lenders. Not sure though and I think I have given up caring! lol

VIGILANT22

dunstonh wrote: »

I know the technical meaning. However, in reality the whole point of paying fee basis it to ensure deals that dont pay commmission are included and that includes direct deals. A fee based adviser only looking at commission deals doesnt make any sense. Justifying that to the FSA would be difficult.

Dunstonh..You're really struggling with what independence means, why are you throwing yr own interpretation on this. You are actually misleading the consumers here by what you're posting.....Independence has been like this before dual pricing reared it's ugly head....The FSA does not say advisers must advise on direct deals...Many networks who have independant advisers will not allow them to "advise" on direct deals as the PI does not cover this...Independence has diddly squat to do with the lender/product...it is regarding fee structure.....Pls refer to MCOB for independence....

MCOB 4.3.7 R (1)(b) means that a firm wishing to hold itself out as independent will need to give a customer a purely fee-based option for paying its fees. However, the firm may

in addition provide the customer with other payment options, such as a combination of fees and commission.