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.”