From: "Andy Pandy" 
Newsgroups: uk.finance
Subject: Re: Mortgages-should i use a broker?
Date: Sat, 13 May 2006 18:01:18 +0100


"john boyle"  wrote in message
news:nVmjvpMoibZEFwWI@johnboyle1.demon.co.uk...
> >> The problem here is that you haven't kept up with (a) the effects of
> >> regulation and (b) the propensity of people to sue and demand compensation
> >> if things go wrong.
>
> >Which is as ridiculous as suing your car insurance broker because he
> >didn't advise
> >you about airbags or ABS.
>
> Thats a very poor comparison indeed. If you wanted to use car insurance
> as an example I suggest it would be you asking an insurance broker for
> basic third party for a very expensive car and the broker merely telling
> you that you have the option of adding fire & theft, or fully comp, with
> no claims protection etc.,

Fair enough - but the broker should bear no responsibility if he *doesn't* advise you
to take out fully comp insurance.  You asked him for a product and he sold you it.

> >> You may wish to have a separate definition for broker
> >> and advisor and that is your prerogative.
> >
> >It's not my definition, it's the dictionary's
>
> Its the FSAs definition that is the one that counts

Then the FSA need to read a dictionary.

They should also understand that not everyone needs nannying, and if people want to
buy a financial product then they should be free to do so without advice being rammed
down their throat.

> >as well as the commonly held
> >definition.
> >
> >> But if a 'broker' does not at
> >> least offer to attend to the insurance requirements of his client he is
> >> guilty of dereliction of duty. This is 2006, not 1996.
> >
> >Then his duty isn't to merely broker a mortgage.  So why does he call himself a
> >"mortgage broker" when he is duty bound to offer financial advice?
>
>
> >What's wrong with
> >calling himself a  "financial advisor"?
>
> He isn't duty bound to give financial advice. Offering advice about life
> insurance is regarded as 'general insurance business'  and, as such, the
> words 'financial advisor' would be misleading unless the broker is also
> authorised to advise on investment business, which he may or may not be.
> IME most mortgage brokers who are fully authorised for mortgages,
> general insurance and investment business DO call themselves financial
> advisers in their literature but will also likely refer to 'mortgage
> brokers' so that clients are aware that they offer that service.

Which is fine, provided they will actually just broker you a mortgage, if that's all
you want.

--
Andy