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Why isn’t network commission ringfenced?

THE EDITOR’S COMMENT OF THE WEEK

Yet again the brokers are the ones who will suffer. I do not know what the mechanics are of what happens with the money within a network but why is the commission from lenders and life companies not ringfenced, like client money?

Only their percentage split belongs to them and if their business model is sound, then they should be able to cover their costs, overheads and any borrowings from those monies. This money does not belong to them, the brokers are not employed by them.

The FSA needs to address this as it will put more brokers out of business yet again through no fault of their own.

Chris Birchall

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