Advisers prevented from choosing high commission

The FSA&#39s proposed suitability requirement is designed to prevent advisers from recommending mortgages that pay them the highest commission rather than products offering the consumer better value, writes Helen McCormick.

There are two options and the regulator says that “consumers should not be recommended a particular mortgage if the adviser ought to be reasonably aware of another mortgage from the range of mortgages he is basing his advice on that better meets the consumer&#39s needs and circumstances”.

The second option stipulates that, where several mortgages are suitable, “the adviser should recommend the better value mortgage based on the pricing elements that are most important to the consumer (except where the consumer asks for a different mortgage).”

The suitability assessment will not require brokers to make an assessment of the housing market.