Members of Sesame network will no longer be able to call themselves ‘independent’ from next month.
As part of the MCD, which comes into effect on 21 March, the second charge market will become regulated.
For firms to be described as independent from that date, they must advise on both first and second charge loans.
But today Sesame notified brokers that they must refer second charge cases to its panel of master brokers instead of providing the advice themselves, thereby effectively banning them from calling themselves independent.
It says: “Network members refer to our panel of master brokers for second charge mortgages (and advice is provided by the master brokers on this panel). This means that from 21 March 2016, you will be unable to use the word ‘independent’ in any promotional material including your firm website, your stationery or verbally when discussing your services with customers.”
However, it says it is working on an alternative for brokers with ‘independent’ in their names.
In March 2015, Sesame revealed it would no longer operate as a network for investment advisers, concentrating solely on mortgages.
Sesame has been approached for comment.