Andy Pratt, chief operating officer at Alexander Hall, claimed the rules that govern the industry were loose on restricting lenders but harsh on intermediaries.
Pratt said: “If Alexander Hall did an advert, then we would need to publish our fees clearly on it. However, if a lender does the same then all it has to do is put the arrangement fee on there, which it can wrap up with the annual percentage rate.
“I believe the FSA has got it wrong with the balance, as it is too easy for lenders to bury their charges in the details on an advert, while brokers have to be far more upfront, which can put off members of the public.”
The purpose of the rules is to ensure that promotions are clear, fair and not misleading, and that firms pay due regard to the interests and needs of consumers. Any person or firm who communicates a promotion must be authorised by the FSA or must have had the content of the promotion approved by someone who is authorised.
There have been calls for a set template on what can and cannot be published and how to keep within the guidelines, as smaller brokers are fearful of publishing material that contravenes the guidelines. In the non-conforming sector, more than 200 firms have had to withdraw or amend misleading promotional material, according to the Council of Mortgage Lenders.
Robin Gordon-Walker, spokesperson for the FSA, said: “The rules apply to both lenders and brokers in order to publish accurate information.”
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