Commission disclosure: calm, compliant... but not all brokers are convinced – Sandford

Questions such as how much advisers earn, how they earn it, and whether clients even fully understand what they’re paying for have certainly raised their head from time to time. And now the spotlight is on mortgage advice.

With growing calls for more commission transparency, and the Financial Conduct Authority (FCA) sitting up to take notice, the mortgage market finds itself under increasing scrutiny. Whispers about potential reform are becoming louder, with headlines hinting at possible new rules that could change how brokers disclose their earnings to clients.

At first glance, that might sound like cause for concern – potentially throwing up questions about fairness and trust. So how do brokers feel about this? In our recent H1 2025 Mortgage Lender Benchmark study, we asked them how concerned they are about the proposed changes, and what impact they think it might have on their day-to-day work.

Brokers mainly remain calm for now

Despite the noise, most brokers aren’t hitting the panic button. Some 51% told us they’re not at all concerned about the proposed changes to commission disclosure rules. In fact, nearly a quarter – 24.8% – said they’d welcome more transparency. Rather than seeing such changes as a threat, it appears these brokers see an opportunity to demonstrate their good practices.

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However, not everyone is quite so relaxed. A small percentage – 4.5% – of brokers told us they’re very concerned about the proposed changes, with another 7.9% saying they’re somewhat concerned. A few brokers were worried that more visible commission disclosures could lead to tricky conversations – particularly in more complex cases where they also charge a broker fee.

One said that some clients may not want to pay a broker fee at all if they see what commissions the broker receives. In other words, clients might question the fairness of the fees, even when they’re justified. Meanwhile, 11.8% said they’re not sure what changes are being proposed. That relatively small but significant figure suggests a degree of confusion in the market. Ultimately, these brokers aren’t sure what the potential reforms might look like.

Impact expected to be minimal

With the majority unconcerned, what about the potential impact? We also asked brokers about the changes they’d need to make if the rules came in.

And the result? For most, not much. Many told us that they already talk through commission details with clients – both in documents like key facts illustrations (KFIs) and in general conversations. So for these brokers, formalising the process wouldn’t mean significant changes to how they work.

In fact, several brokers were keen to stress that commission disclosure isn’t just about ticking a compliance box – it’s a fundamental part of being open and fair. One broker said that clients are already aware of the commissions they receive, and this builds trust.

However, a few brokers called for more support from the FCA – particularly when it comes to maintaining transparency while still ensuring fair remuneration. As with Consumer Duty, many feel that clear, consistent guidance from the regulator would go a long way in helping the industry get this right.

Brokers say they’re already compliant

So, with minimal impact expected, are brokers making any changes in response to the FCA’s growing focus on commission transparency? Predictably, the answer for many is no. Almost half – 46.6% – said they haven’t made any changes because their current approach already does the job. Given the earlier comment about transparency being part and parcel of the advice process, this confidence is unsurprising.

Elsewhere, 10% of brokers said they plan to make changes but haven’t got around to it yet – suggesting a ‘watch this space’ mindset while the picture becomes clearer. Just over a third have already acted, with 6.7% saying they’ve made significant changes and 27.2% reporting minor adjustments. Meanwhile, the fact that 9.5% of brokers said they weren’t sure reinforces those earlier calls for clearer guidance from the FCA.

Final thoughts

It’s clear from our research that most brokers feel confident in their existing approach to transparency and see no major reason to worry about the potential new rules.

But there are a few caveats. Some are still concerned about how clients might interpret commission figures, especially for more complex cases. And with a few brokers still unsure about what any reform might involve, it’s clear that communication will be key if the proposed new rules come to fruition.

To end on a positive note, most brokers believe they’re already on the right track. But as the debate around commission disclosure picks up pace, they’ll likely be keeping a close eye on what the FCA does next – and what that could mean for the future of mortgage advice.