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The regulator is failing to back brokers and needs to treat them more fairly

On March 31 the BBC website carried a story entitled ‘Sub-prime buyers rely on brokers’. I hoped that it would support the work we do, particularly during these challenging market conditions. The public should be encouraged to use independent advice rather than Google.

But to my dismay the article stated that reviews by the Financial Services Authority had discovered that borrowers reliant on brokers for adverse deals might not make informed choices.

The article also said that sub-prime clients should look at low APRs as the most important consideration. But the APR is just one element of a deal and while unsecured products can easily be compared using this method, mortgages are more complex.

I don’t deal with much sub-prime business but the FSA’s statements are unfair. You don’t see the Law Society encouraging consumers to go to the library and source their own legal advice.

Brokers are professionals and should be considered as such, particularly by the regulator. After all, we pay it substantial fees to wade through the red tape it puts in the way.

May I suggest the next time the FSA undertakes a thematic review it looks at treating brokers fairly?

Alex Smith
Sales manager
Perception Finance
By email

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