apfront payments to a mortgage broker/adviser

Retired_I.F.A.

I'll give it two years five tops.

Think about it, Drawdown 6 years ago when I quit the industry was considered amongst the most complex part of an IFA's business, Sipps were for the rich (apparently wiser) and comparison sites were non existant.
Motor brokers are closing up shop in their droves, IFA's are becoming more and more investment advisers than product type advisers/brokers and the governments 50 year old aim of simplyfying pensions is at last actually working. 10 years from now final salary schemes will be history and eveyone will be in a SIPP looking to drawdown in retirement.

Whose to say the govenment wont fund a commission free fee free comparison site fo all financial products and link to a hefty q+a section covering all possible questions. Self education via the web and execution only is the future. The days when **** was sold not bought has passed us by.

insert almost any financial product for ****

dunstonh

If you are requested to do so, they are not very professional

Wardlaw, one of the FSA proposals for 2009 has now been extended to mortgage advisers and is that all whole of market/independents will only be able to operate on fee basis. It is seen as the most professional option.

UK007BullDog

I have spent months and years to reach my level of knowledge and have to continue to study at a high cost (money and time). The FSA requires us to have education, insurances and procedures in place. We pay for the FSA, insurances and compliance. We pay for running a business and have to also make a profit (our pay) and pay taxes.

Because of that once I am working again as a broker I will charge an up front fee which will be refundable if the customer goes with me. If the rules come into effect that we have to charge a fee I will give the customer the commission (if we still get those) I would get for their mortage.

But there is no way I would work for free and spend hours researching for a client only for them to sting me. Hardly anyone works for free (unless volunteering in a charity).

If you go with an independent whole of market broker then he/she will be able to find the best deal suitable for you.

Going to a bank directly does not mean you will get advice as the seller is pressured to make a sale. Plus some do not even have full qualifications like not even Cemap 1 and I dont know how the FSA can let that continue. Brokers have to have the full quals and more, so they are much more qualified. The bank only sells their products which might not be the best available.

dunstonh

Going to a bank directly does not mean you will get advice as the seller is pressured to make a sale. Plus some do not even have full qualifications like not even Cemap 1 and I dont know how the FSA can let that continue.

One of the proposals under RDR is that the primary advisers (closest match are bank advisers and other tied salesforces) would not be able to use the term adviser. The FSA hasnt positioned it with mortgage advisers yet as the comments from the FSA suggesting the RDR is extended into mortgage advice didnt say in what way or what form.