Mortgage brokers were also reviewed briefly in Issue 116 of the Business Values Newsletter in July 2011. Whilst the primary focus of the FOFA legislation was aimed at financial planners (see our article on financial planners in this newsletter) as time goes on it is likely that mortgage brokers will see further impacts from this legislation. For example in the next five years fee structures that currently include volume based/trail commissions for mortgage broking services may be the subject of increased scrutiny and reforms. Whether this happens to the extent that it has in the financial planning industry is however dependent somewhat as to whether mortgage brokers are seen as financial advisors or more simply as just product sellers.
