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Take extra care when using brokers at moment

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  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    The crucial point is ensuring that the customer is made very clear about what they are being provided with. The intermediary should clarify that there are deals only available direct from certain lenders

    And this is my main point to consumers here ... don't assume Whole of Market means that ... and more over don't assume that just because brokers says I recommend XYZ lender, that the this is the best deal on offer from that lender ( matin's article covers non-broker lenders, but ignore non-broker deals from normally broker assessable lenders)

    As clarified in the above price brokers aren't doing anything wrong by just quoting whats available ( some can/ will extend their research - for a fee) BUT you should be made aware ( or ask if not!) of the actual level of research you aree getting .... there's no such thing as a free lunch - you pay one way or another.



    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Update - takren from another site - reply by FSA to a broker about this

    if a customer goes to a whole of market intermediary, and the intermediary recognizes that, in current market conditions, there may be more competitive products in the market other than those available to the intermediary, that may be of interest to the customer, we think that there must at least be acknowledgement of this. We think that in such cases the intermediary should clarify to their customer that, while they are not tied to a particular set of providers, there are certain deals only available direct from lenders; and that if they want to investigate that sector of the market for themselves they may find more competitive products - but we don't expect the intermediary to point to a specific product or provider, and we would have no difficulty in the intermediary drawing attention to different levels of service. We do not think this an overly onerous disclosure; and indeed believe that intermediaries would want to make such a disclosure, in a positive and pre-emptive way - they run the risk of complaints and damage to their reputation if the customer subsequently discovers a better deal on the high street.
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Martin I feel its time to update your articles to ensure consumers are aware of this .., and to ask their broker - and if not convinced consider going elsewhere
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • homer_j_3
    homer_j_3 Posts: 3,266 Forumite
    I have spoken to my network about looking at direct deals and have been told that this can only be done where a verified KFI can be obtained.

    This has been repeated in various articles that I have read, so I am actually questioning whether or not the fee charging advisers can still provide true whole of market advice and how they prove their research of direct products etc.

    I have been quite comprehensive in what I would do but this still isnt satisfying my compliance peeps. Any suggestions...
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Tiddler_2
    Tiddler_2 Posts: 537 Forumite
    So are they saying that if you are NOT a WOM broker you don't have to tell them this? Remember WOM brokers may work from a limited panel. So surely that's penalising WOM brokers?

    If someone goes into the Halifax, are they going to say you could get a cheaper deal with other lenders? Or are if roles were reversed are they going to say, you could actually get a cheaper deal by going to a broker?

    Are they eck!!

    Just another kop out from the FSA, in my opinion.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Re KFI, whislt obviously better if we could ensure delivery of a KFI at our end .. as the transaction is actaully with lender ( who issues own KFI) then I would assume ( in meantime) we should be able to say any fee is for research not the brokers recommendation
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Tiddler wrote: »


    Just another kop out from the FSA, in my opinion.

    Not disagreeing

    This is a consumer site though, so my posts on this matter are more directed at consumer protection / education
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • Tiddler_2
    Tiddler_2 Posts: 537 Forumite
    I understand what you're doing in respect of raising the issues for consumers to be aware of, and back you 100% in that.

    I just feel that the FSA are prepared to take the annual fees of every broker firm up and down the country (and the lenders aswell) and are quite happy to see brokers go out of business - or will probably penalise them for failing to advise customers appropriately.

    My "bosses" are of the opinion that it is business as usual and if the customer happens to find out about a better deal then so be it. You can only "advise" on the deals available to you!!
  • payless
    payless Posts: 6,957 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I also have a business to run, but honestly could not look a client in the face whilst calling myself independent/ WoM ( or telephone, or email... ) and make a recommendation of a much inferior product

    If a firm wants to be a sales outfit thats fine..( its their business) but not if hiding behind cloak of Indy/ WoM adviser
    Any posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.
  • certainly i do agree with you my friend.
    but to avoid the unnecessary fush one prefers to deal through a broker. in the process one might have to pay more but atleast you are safeguard and relaxed. you need not worry about the deal. the entire project is handled and neatly carried by the broker. but then one must atleast get the information about the broker. according to me only reputed brokers should be appointed as few among the rest are frauds, so they should be taken cre off.
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