The Financial Services Authority has announced money which mortgage intermediaries receive by way of commission against fee-based advice will fall outside the scope of the FSA's client money rules.
The arrangement mirrors one which is already in force for financial advisers in investment business and the FSA says it will adopt the same stance until a long-term solution is found. Mike Lord, head of investments small firms division at the FSA, says: “In the run-up to depolarisation last year we decided it would be disproportionately burdensome for investment firms to apply the full force of the client money rules on commission money and the same principle applies for mortgage business.” Lord says the decision is in line with the FSA’s aim of keeping the effect of regulation on firms...
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