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Genesis finds solution to fee problem for ARs

Mortgage network Genesis says it is the first network to come up with a solution to planned FSA rules which require any mortgage appointed representatives calling themselves independent to offer a fee option.

Genesis has previously highlighted a problem where its says most brokers had assumed that any procuration fee rebated to the client would relate to the net fee but regulations required the gross procuration fee to be rebated.

Head of compliance Frank Thurlby says: “Although this issue looks like an easy one to resolve, it does create a number of complex compliance issues for networks.”

The firm says it has developed an accounting process supported by an audit trail which allows its ARs to rebate the procuration fee fully to clients while allowing Genesis to charge ARs for the compliance services they provide.

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