This, we are told, is a single tie with multiple products. In some areas, the wealth managers of Bradford & Bingley will be recommending L&G. Mortgages will operate off an existing panel. For investment, advisers will have access to Cofunds’ range of fund managers although the exact mechanisms for fund selection remain unclear. It is a very different model to that proposed by, say, Sesame or Bankhall or Prudential.
It demonstrates the nonsense of Treasury and FSA suggestions when they ushered in depolarisation that it would increase the tied range, with an implication that most independents would remain independent.
Of course, Bradford & Bingley was always looked on suspiciously by many other IFAs who regarded it as a de facto multi-tie. But it will still be interesting to see how B&B’s advisers take to participating in a single tie with L&G. If they are unhappy, some may vote with their feet.
It is a bold move and one that all IFAs and prospective multi-tie operations will watch with interest.
Mortgage regulation has not quite gone to plan. Advisers remain confused and irate with what they see as problems which should have been anticipated. The AR-DA quandary remains a quandary. KFIs are posing all manner of difficulties, brokers are dissatisfied with service, networks – those that are big enough – are hoping lenders hurry up and adjust to the new way of doing business. If things continue like this it will not be teething problems the mortgage industry is facing, just problems.