Following an internal review of ongoing compliance procedures towards the end of last year, Your Mortgage Decisions implemented the new structure in accordance with the regulator’s TCF initiative which sets out principles for ensuring all customers receive the same high standard of service and are treated equally.
This includes ensuring a common fee-charging structure is used where fees are charged.
Now, having worked within the new structure throughout 2010, Your Mortgage Decisions has seen no reduction in fee income compared to the previous twelve months.
It also believes it has led to an improvement in some advisers’ remuneration levels due to them finding it easier to work within a defined structure.
Quality of advice is an integral philosophy engrained within the Your Mortgage Decisions proposition and throughout its advisers. Advisers undertake an extensive training and development process to ensure that quality of advice and robust compliance procedures are firmly in place.
Advisers work on a fee-charging basis undertaking a holistic lifestyle factfind over a two-appointment process to ensure a tailor-made solution is delivered to each and every client.
Commenting, Martin Wade, director at Your Mortgage Decisions, said: “We have always encouraged our advisers to charge a fee as we feel the quality of advice and service given sufficiently justifies this.
“However, with regulation changing we felt it made sense to bring some uniformity to our fee structure both in terms of the regulatory angle and to make sure fees are even more transparent for clients. This current policy was introduced at the start of the year and has worked well since.
“Fee-charging was once a hotly contested debate among mortgage intermediaries but it has become increasingly evident that many have already ingrained this into their business models.
“A poll by RBS Intermediary Partners found that only 4% of attendants at a recent Forum event in Sunderland ruled out ever charging a fee. This not only illustrates the nature of the market but also shows that intermediaries have clearly recognised the need to change their operating business models and are looking to diversify.
“Nevertheless intermediaries still need a strong level of support in order to do this which is why we remain committed to helping firms though any transitional phase by not only providing an extensive training and development facility but also by mentoring them through the whole process.”
