Brokers welcome PAI policy reversal
However 46 per cent sat on the fence and said they weren’t sure.
Nevertheless, the announcement by the FSA to reverse its decision to make lenders responsible for ensuring intermediaries hand out a PAI, was welcomed by over 40%.
Commenting on the survey, Brian Pitt, director of sales and marketing at Future, said, “This validation of intermediary activity would have provided an administrative nightmare for lenders and resulted in new systems and time requirements for brokers. This was one of the issues within CP98 that could have been solved with a technology solution but this would have required significant financial investment that many smaller brokers simply could not afford.”
Brokers had been concerned about lenders effectively inspecting their sales process, which is a main reason why only 11 per cent of brokers supported lender involvement.