Esther Dijkstra (pictured), director of strategic partnerships at Lloyds Bank, explained that the lender had reservations over the push into execution-only from the Financial Conduct Authority (FCA).

Speaking on the lender panel at the Financial Services Expo in London she said: “No doubt there will be some customers who come direct but I agree, it can be quite dangerous for customers to do that.

“And we’ve asked questions to the FCA about does the Prudential Regulation Authority (PRA) recognise that this might increase the risk for lenders taking on more business as execution-only?

“Because brokers can assess and give proper advice, and I think that will remain important because now people’s lives change all the time.

“Yes in a two-year time window you might say a straightforward product transfer is the best, but we know that people might need to capital raise or circumstances change, and then advice will still be the best route.”

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