In a blog post for Mortgage Solutions, Sinclair highlighted the growth in costs intermediaries would face because of action by legislators and regulators fed up with failure and scandal in the wider financial services sector.
Although he warned intermediaries “we should be very afraid”, he added: “Whilst all trade bodies, AMI included, will grind their teeth, shout with rage and demand better value for the fees, we are on shaky ground. The industry needs to clean up its act, oust the charlatans, only recommend great products from good firms and avoid being seduced by clever marketing and spin.
“Old fashioned advice values built on simple products has to be the order of the day.”
Sinclair listed MEP desires to cap fees, plans for hard commission disclosure on protection and the upcoming Financial Conduct Authority legislation, and Financial Ombudsman costs among the issues facing intermediaries.
Thanks to scandals such as LIBOR fixing and money laundering, the wider financial services industry had done little to endear itself to society, he said.
For the full blog, click HERE.
