The Financial Services Authority today offered a temporary concession to mortgage brokers over client money rules.
It says that pro fees received by advisers and rebated back to clients will fall outside the scope of the FSA’s client money rules.
This arrangement mirrors one that is already in force for financial advisers on investment business and will run until a long-term solution is found.
The move has been welcomed by the Association of Mortgage Intermediaries.
Director general Chris Cummings says: It is pleasing that the FSA has taken this stance on client money.
As written, the rules did not account for arrangements in the mortgage industry and it is right that brokers can now benefit from this concession.
FSA small firms division head of investments Mike Lord adds: This is in line with our aim of keeping the effect of our regulation on firms, particularly small firms, to the minimum that is necessary to meet our consumer protection remit.