In a recent survey, almost 500 mortgage and general insurance brokers were asked their opinions on the regulations soon to change the industry.
Whilst the majority of people asked said that regulation of mortgages and general insurance (such as home and car insurance) would create a better industry, almost half said it would do nothing to ensure customers received the best advice possible.
Our View
Like it or not, regulating a non-regulated industry will increase costs and administration for everyone. This could lead to mis-selling for more commissions etc, as has been the case in the past.
However, regulating the industry will put the cowboys off, knowing that they will have to deal with the ongoing regulation and costs. This, over time, will help to stabilise the industry and make it a better place for consumers.
We believe that there is still a long way to go before the financial services industry earns a decent reputation. But, regulation is getting it there.