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Fees proposal will expose networks as money machines

From Michael Norwood

I would like to make any brokers who are intending to go for direct authorisation aware of an important consultation paper, CP04/9, to which the FSA is inviting responses.

This paper is proposing that any brokers who fall into the minimum income bands in both mortgage and general activities, i.e. under £100,000, are given a discount on annual fees.

This would result in substantially lower annual fees for many brokers. The FSA has recognised that many intermediaries would be unreasonably hit by a doubling up of fees simply because they are active in both the mortgage and general insurance areas.

The proposed fee reduction for these firms shows that the FSA, contrary to what many networks are saying, is committed to retaining the small independent sector and should be welcomed across the industry.

The proposal will also now expose a lot of the network AR propositions for what they really are – money-making machines working off the back of the new regulations.The FSA should be congratulated on this proposal, and I urge brokers to get to the FSA website and use the online response form positively.

Michael Norwood

Mortgages Made Easy

By email

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