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payless

VIGILANT22 wrote: »

D.pls refer to The FSA MCOB Handbook on independence
MCOB 4.3.7R(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.

and you can be independent without being whole of market...

Quoting the rules seem to add authority to the fiurst quote post , but don't be selective

also second quoted post is wrong


its says 2 things:


(1)When providing information or giving advice to a

customer on

regulated mortgage contracts

, a firm must not hold itself out
as acting independently unless it intends to:

(a)

provide that service wholly or predominantly based on the
whole market ; and
(b) enable the customer to pay a fee for the provision of that
service.
(2) A firm which in accordance with (1) holds itself out as independent
must ensure that the information or advice subsequently given to
the customer concerned is information or advice on regulated

mortgage contracts from the whole market

----
whole market is defined as:

4.3.4

(1) A firm which holds itself out as giving information or advice

to

customers on regulated mortgage contracts from the whole

market must not give any such information or advice unless:

(a) it has considered a sufficiently large number of regulated
mortgage contracts which are generally available from the
market; and
(b) the consideration in (a) is based on criteria which reflect
adequate knowledge of the regulated mortgage contracts

generally available from the market as a whole.

---

Like I said before to be treating customers fairly needs points need to be taken in the terms of what a client might think they mean, ORn to clearly explain their limitations.

VIGILANT22

you can be representative of the market... ...and independent...many networks are an example of this but they're not truly WOM

http://www.fsa.gov.uk/pages/Doing/Regulated/Promo/rules/mcob/index.shtml

What do you mean by 'independent'?

You must not hold yourself out (including advertising your firm) as acting independently in providing information or advice to customers unless you intend to:

• provide your service wholly or predominantly based on the whole market; and
• give the customer the choice of paying by fee for that service.

So if you advertise your firm as independent you must state your fee prominently. See also Question 5 about 'Stating information about your Fees'.
You can find more details on independence in our Handbook - Mortgages and Home Finance Conduct of Business Sourcebook, Chapter 3 at 4.3.7R.

predominantly = from a panel of lenders who are representative of the market

stueyhants

Irespective of whether the advisor is truely independent/whole of market broker and can get you the best deal. You DO NOT want to deal with anyone connected with the EA. The EA works for the seller of the property not you. You do not want them to know how much you can really afford as when it comes to price negiotation you will be at a disadvantage as they will know how much you can really pay rather than what you want to pay !

Conrad

OP

The way the advice is paid for is via mortgage and INSURANCE commision. The insurance commission side of the business is that which is focused upon in team meetings, so of course there will be an attempt to flog you thier insurance.

You do not need a broker unless you are a complex case.

Lenders such as ING and the Post Office can offer decent packages direct.

payless

A firm caliming WoM ( or independence) may well be allowed to use a panel BUT
they should have to show that the panel is large enough AND would need to update its selection of regulated mortgage contracts if it became aware that a regulated mortgage contract had become generally available offering an improved product feature, or a better interest rate, when compared with the regulated mortgage contracts currently in the firm's selection.

But enough already .. what I think is being said here and on various other threads....
Consumers can not rely on what they think independent or WoM means ....

IF a broker is fees free or charges a fee on top of of commission the consumer should ask broker about direct deals and if needed look themselves.

IF a broker is soley fee based ( ie rebates all and any commission) then they are more likely to offer a fuller research.. BUT consumers should still ask.

aqueoushumour01

OP here again. looks like a set of a bit of debate! I think I will need to clarify who this person is and whether they really are independent. I'm always wary of conflict of interests, and I don't want to be at a disadvantage if all arranged via the EA. It was basically put that this person will look across the market for me meaning I won't have to go to each bank myself, but I just cant believe they would offer this for 'free'. There must be something in it for them as it's the EA recommending it e.g. insider info as to how much I can afford etc...

Dan_1976

Yeah please quick as you can LOL