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Gaskin fears over procuration fees

Burns Anderson network chief Jim Gaskin has raised fears over the future of procuration fees for mortgage brokers as a result of CP121.

Many brokers make the vast majority of their income from mortgages through fees paid by lenders but Gaskin says this could soon change.

Speaking at the G80 summit, Gaskin cautioned advisers that if they are forced to be remunerated by the definedpayment system for life and pension business, there are obviously doubts over whether they can still get proc fees on mortgages.

In the event of the implementation of the DPS, as outlined under CP121, Gaskin said the onus is on networks to help their members cope with the impact of any changes that will affect their turnover and how they run their business.

He also said networks had a role to play in helping brokers get the minimum required mortgage qualifications by the deadline of December 31.

Gaskin said: “If DPS is brought in, what will that do to procuration fees? IFAs need support coping with this and networks must try to help.”

Broker franchise Mort-gageforce managing director Robert Clifford says: “High-net-worth clients might acc-ept the defined-payment system but the mass market is not willing to pay fees for mortgage advice.”

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