Lynda Blackwell, manager of the mortgage policy team at the FSA, said there should be no confusion.
She said: “That would be advised because the lender is talking to you and helping you decide which product you want and whether that’s appropriate.
“Execution-only is where you know precisely what product you want, you don’t need to have any discussion with the lender whatsoever; you instruct the lender what you want and they go away and do it.”
Currently the majority of lenders’ retention business is handled by unqualified call centre staff who would require training under proposed regulation.
Pundits believe forcing this part of lenders’ business into the advised bracket could create opportunities for brokers in the future.
Robert Sinclair, director of the Association of Mortgage Intermediaries, said: “The proposals to encourage all customers to benefit from advice will have a significant impact on lenders non-advised call centres.
“Currently the majority of retention business is dealt with by unqualified staff who will require training under the proposed rules and will have to attain CeMAP and maintain competence.
“Lenders may wish to review whether intermediaries can undertake more of this work by providing a cost effective alternative.”
Currently Halifax for Intermediaries pays a retention proc fee while the other major lenders don’t.
