RDR ‘to force brokers into networks’

Of the 200 brokers questioned, 55 per cent stated the FSA’s review would make more intermediaries consider joining a network, while 42 per cent disagreed.

The RDR extended previous work to create a regulated advice structure that ensures consumers have the understanding and confidence to purchase retail investment products, but there have been concerns that it will inevitably extend to the mortgage industry.

Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, said: “A

ny learnings from the RDR will be welcome as both the industry and FSA have a mutual interest in ensuring that consumer confidence remains high and the market continues to work efficiently and effectively.”

Melanie Bien, associate director for Savills, said: “Smaller brokers may find it easier to adjust to any introductions from the RDR, but large-scale brokers will probably carry on as usual. We won’t know until the FSA transfers it over.”

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