The Association of Mortgage Intermediaries has warned mortgage brokers that there may be issues with them selling structured products which could lead to conflicts of interest.
AMI director Chris Cummings says he is worried that some products can be sold without advice. He says the ombudsman might ask some searching questions about the circumstances of selling such a product if the customer had originally gone to a broker seeking a mortgage.
In a nutshell, he sees problems with an independent mortgage broker selling a tied fund.
We understand how difficult things are but brokers must be wary of seeking new sources of income and an escape channel that eventually proves to be bad for clients and ultimately bad for them. It would be much better if they seek to ally themselves with proper IFAs for referrals.