Brokers not expected to promote direct deals - FSA

In a note to members, AMI said not only did the FSA not expect brokers to recommend direct deals, but the differential between branch and intermediary offers has narrowed considerably.

It also confirmed it will shortly be publishing a report examining lender pricing activity.

Chris Cummings, director general of AMI, said he was grateful for the clarification from the FSA, and emphasised AMI had been in negotiations with lenders, trade bodies and regulators during the recent market turbulence.

He continued: “Much of our work has necessarily been behind the scenes but members will know it is better for their trade body to be effective than simply to be loud.

“Across the market, the differential between branch and intermediary offers has narrowed considerably – and in some cases favours the intermediary again. These may be early indications but they are welcome and we will be monitoring the pricing position day-by-day.”