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Treasury &#39passes buck&#39 on CP121

Mortgage brokers and lenders are calling for clarification on how CP121 will affect the industry after the Treasury said the FSA will be asked to consider the impact of the polarisation consultation.

While broker club and sourcing platform Mortgage 2000 is accusing the Treasury of passing the buck, lender Future Mortgages supports the move, which it claims gives the industry the chance to decide its fate.

The Treasury says responses to it consultation revealed worries over a fall in the number of independent mortgage advisers if they are forced to charge fees as proposed in CP121.

But the Treasury says the appointed representative regime will be extended to mortgage advisers so brokers will have to decide between becoming an AR of one lender or becoming authorised independently and giving up AR status for life products.

It is leaving it up to the FSA to consult on the AR regime rules and respond to concerns that few advisers will be able to choose from the whole market and customer choice will be limited.

Mortgage 2000 sales and marketing director Sean Hornsby says: “The whole thing is a fudge by the Treasury and all the difficult issues like polarisation have been passed to the FSA but this is what I expected.”

FSA spokesman David Cliffe says: “The Treasury&#39s publication clears the way for us to start our consultation.”

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