Mortgage brokers to stop funding pensions and investments mis-selling
Mortgage and protection brokers will no longer have to pay for the mis-selling of pensions and investments come 2019.
The Financial Conduct Authority has recategorised protection intermediation from the life and pensions funding class to the general insurance funding class after receiving feedback from the likes of the Association of Mortgage Intermediaries.
AMI said the decision was the culmination of a two year journey to achieve a fairer outcome for mortgage brokers.
Robert Sinclair (pictured), its chief executive, said: “The senior management of the FCA listened to our logical arguments and agreed that these changes were sensible.
“We believe that these amendments to the funding of the FSCS should deliver a more balanced industry in the future.
“In resisting strong lobbying from the provider community, the FCA has stood up in support of smaller advice firms.”