View more on these topics

Advisers cannot get details from lenders

MortgagesBy Tanya PowleyBrokers have hit out at the FSA’s suggestion that they should charge a fee for advising a client to take out a mortgage direct from a lender.

FSA head of mortgage and credit unions Jonathan Fischel said the adviser fee would not need to be included in the lender’s key fact Illustration.

He said the broker would have to create its own KFI and explain the different roles the two firms are playing and the resulting differences in the disclosures they will provide.

But Talk Money director Claire Cook questions how advisers are meant to quote on deals when not all lenders allow brokers access to the KFIs for their direct deals.

She says: “I have tried with several lenders to get KFIs for their direct deals and I was told I could not have access. By regulation, I am not allowed to advise on these deals unless lenders allow me access to KFIs.”

Sole trader Selwyn Davies says: “What is the regulator doing about direct offers where you have to start the application process to get details of penalties, valuation fees, etc?

“As usual, the regulator adds to the work of the broker and ignores the tricks of the banks to make it difficult for customers and advisers to get accurate information.”

Personal Touch Financial Services sales director Dev Malle believes there needs to be a fundamental shift in lenders’ admin process before this option could work.

He says: “It is a problem to get hold of KFIs for lenders’ direct deals. It needs some change from lenders.”


Vasilieff is set for platform launch

Former Selestia sales and marketing director Bill Vasilieff’s new wealth management platform will launch this autumn as Novia Financial.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm