Duncombe, director of intermediaries at Accord, claimed that if regulators allow lenders to make rates cheaper, it could encourage clients to use the unregulated channel.
As part of the lender panel at the Financial Services Expo, Duncombe said: “If you get cheaper rates doing execution only that’s a huge issue.
“But even just trying to push more people on an execution route because they think that’s the way people want to go; I think it’s the wrong way.
“We’ve got to do that as a sector. It’s fine for the right people but we’ve got to work out who those people are.”
Adrian Moloney, sales director at One Savings Bank added that it was “unsurprising” that some customers had shifted to execution-only products but said he could only see “certain generations” opting for it.