The FSA is certainly considering it as a viable option.
Speaking at an FSA Mortgage Conference yesterday, FSA director of retail policy & conduct risk Dan Waters said: “We’re left with questions about whether we should take a firmer view on remuneration arrangements and on excessive fees for certain products.
“The retail distribution review aims to reduce the conflicts of interest inherent in remuneration practices in the investment market.
“The proposal we have put forward and expect to consult on is adviser charging, which ends the setting of commission levels by providers and is intended to deliver a knock-out blow to product bias.
“We must consider whether such a structural intervention in the mortgage market might deliver similar benefits to consumers.”
What do you think? In principle adviser charging could work for IFAs, but is it the right way forward for brokers?
Will clients be prepared to pay a separate charge for mortgage advice? Is this the right time to be introducing a new remuneration structure when many brokers are struggling to keep their businesses afloat?
Should more of the RDR apply to mortgage brokers, such as higher qualifications and professional standards as the Council of Mortgage Lenders has suggested?
Let us know your thoughts below.