SMS creates account for broker fees

Solent Mortgage Services has revealed that all commission fees earned by brokers are now being paid into a separate client bank account.

SMS says packagers need to do everything possible to ensure that introducers feel confident in dealing with them.

Ian Balfour, sales and marketing director at SMS, says: “We have never used broker fees as cash flow and SMS has always paid its customers on the day we receive money from the lender.

“There has never been any doubt that our introducers would be paid either now or in the future.”

Balfour says some of SMS’ bigger introducing partners have been conducting due diligence on the relationships they have with product providers.

He says one of the action points that emerged was the need for a client account from which commission fees can be guaranteed.

He adds: “It is our belief that all packagers wishing to maintain the confidence of intermediaries will make the same move. A legally separate account into which fees from lenders are paid for the sole benefit of the intermediaries who have earned them is the way forward.”