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Brokers urged to review business model or risk RDR

Brokers have been urged to review their current business model to ensure dealings with clients are transparent and fair or risk attracting the attentions of the Financial Services Authority’s Retail Distribution Review.

Peter Mann, chief executive of Bankhall, says that with the RDR, the question wasn’t would it affect the mortgage market but why wouldn’t it?

Mann highlighted customer agreed remuneration, increased qualification hurdles, the sustainability of the distribution sector, increased risk-based capital requirements and risk-based supervision as the issues most likely to affect brokers.

He says: “I believe the FSA are not concerned whether advisers are remunerated with fees or commission as long as they are clear and open in their dealings.

“Advisers receiving ongoing fees must be seen to have an ongoing relationship with their client.”

He adds: “The FSA’s thematic work on mortgage advice continues and the results continue to be disappointing. Its mortgage quality of advice review has highlighted areas of concern and market movements may force change.

“The FSA plans to produce another review in June 2008 as it continues to have concerns, therefore I would suggest you review your business model before someone else does.”


MfB appoints BDM

Mortgages for Business has hired Emma Neylon as a business development manager to help expand its B2B proposition.Neylon will manage MfB’s business partner and network relationships and she will be the support for any deal placement concerns, issues or advice.Neylon has previously worked for Mortgage Trust, Optoma and Concert Mortgages and she brings a broad […]

5,000 Brokers train with Trigold

Trigold claims nearly 5,000 brokers have used its online interactive training system since it was launched last year. The system features seminars on the sourcing system’s automated valuation model, secured loan, e-trading, insurance and conveyancing facilities.

Automation gives investors confidence

Every lender has a unique business proposition with a specific methodology that backs up its brand. Understandably, each organisation is keen to promote and justify its chosen strategy and many use a mixture of PR and advertising to do this.

Training days need cash investment

Lenders and insurers could benefit the mortgage industry by focussing sponsorship funds on training events for staff who may not have access to inhouse programmes, says Sue Read


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