New rules to ban mortgage brokers from accepting free tickets or golf trips from banks

New rules to ban mortgage brokers from accepting free tickets or golf trips from banks

Mortgage brokers will soon have to make it clear if they are being paid commission by certain providers.

The Central Bank's new rules will also mean financial advisers cannot say they are "independent" when they get a commission from a bank or insurance firm.

The acceptance of free golf trips or match tickets will also be banned when the changes take effect in March of next year.

Under the new rules, brokers will be required publish details of the commissions they receive from product producers on their website.

The regulator says any commission received in the form of "non-monetary benefits" will have to "demonstrably enhance the quality of the service to the consumer" in order to be allowed.

The changes will come into effect in March next year.

Grainne McEvoy from the Central Bank hopes it will provide more transparency for people dealing with financial advisers.

She explained: "It will be very clear to the customer upfront what the broker is receiving by way of a commission from their underlying bank or insurance company.

"From our perspective, we feel it is better for the industry if brokers don't accept hospitality and gifts in the form of tickets and indeed golf trips... and ultimately that's better for the company as well."

Ms McEvoy suggested that, in some cases, brokers are being paid significant amounts of money to promote a certain provider.

She added: "It is a practice that exists in the industry - what we're doing here is restricting brokers from taking any form of gift."


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