Nationwide Building Society head of intermediary sales Ian Andrew says if the recent proposals in the FSA’s distribution and disclosure consultation paper become rules, more intermediaries could adopt a fee-charging model.
In its recent mortgage market review consultation paper, the FSA proposed brokers would no longer have to issue a key facts illustration when advising on direct-only deals. Some say this could lead to more brokers charging for their services when advising on direct-only deals.
At the CML conference, Andrew said: “One major brokerage in the UK adopted the principle where its advisers would offer customers direct-only deals as well as intermediary deals. They adopted a fee-charging model and it has worked out well for them.
“I think, depending on the outcome of the consultation paper, you may well see more intermediaries starting to build direct-only propositions and start charging a fee for them.”