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Imla fears broker and IFA split over payments

The retail distribution review could create a two-tier mortgage advice market due to the different remuneration requirements of brokers and advisers, says the Intermediary Mortgage Lenders Association.

The latest RDR paper confirmed that mortgages will not be included in the review but it says: “Preliminary analysis of firms’ business models suggest that, for example, some banks may consider reflecting the changes required for their investment distribution business by applying the same model to both investment and non-investment business.”

Imla chief executive Peter Williams says this could lead to two different styles of process and a split between IFAs and brokers.

He says: “Our sense at this stage is that the mortgage market will be dominated by commission but there will be a steady migration towards a more fee-based structure over time and the RDR will push that along.

“One begins to wonder whether there will be a retail distribution review for mortgages, given what has happened since the initial RDR consultation.

“We have had a fundamental reworking of the mortgage market and that will have a fundamental impact on distribution and on funding.”


Grim realities

To Pall Mall last Tuesday, lured by the chance to hear actuarial guru and show-stopping speaker Ned Cazalet give his updated lambasting of the life insurers courtesy of the top-end and often rather beautiful headhunters Horton International. It was noted that outsourcers might be more in demand than headhunters through 2009 but that there was little point now in us trying to stop the gravy train because the buffers are already in sight and the brake handle is in the hands of Accelerating Alistair and Go For It Gordon. If big spending is not the trick, then Britain’s next posh dinner could be a long, long way off.

Mothers missing out on millions

By Steve Webb, director of policy and external communications The ninth Royal London Policy Paper discusses how thousands of mothers are missing out on state pension rights when they don’t have to Earlier this month we published the ninth Royal London Policy Paper, entitled ‘Mothers Missing out on Millions’. It focuses on the thousands of mothers […]


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