The FSA is considering an RDR-style review of the way mortgage brokers are remunerated, following concerns over commission bias.
The regulator has already hinted the mortgage industry could learn lessons from the RDR's examination of the sale of retail investment products. Previously, the FSA has discussed considering better disclosure, and clearly defining the difference between advised and non-advised sales in the UK mortgage market, but today Dan Waters, director of retail policy and conduct risk, revealed remuneration was also being targeted. Speaking at the FSA's mortgage conference today, Waters says: "Although our regulatory regime sets standards for brokers in respect of advice, disclosure and selling pra...
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