Are UK mortgage brokers next for ban commissions?
Mortgage brokers could be facing a threat on ban commissions if the government in the UK pushes its campaign against kickbacks. Financial Services Minister Chris Bowen said including mortgage brokers on a ban of kickbacks may be subjected for review since brokers are selling loans and not investments. "They are covered by a different regime but we will consider that as part of our national credit reforms, and phase two of that is coming," he said. Minister Bowen declared yesterday that financial planners are forbidden to receive kickbacks, volume discounts, and commissions from its clients and investors, and will only charge its clients for advice rather than recommend services which appeared to be free.