The regulator has been consulting the market on planned changes including how firms can market execution-only channels and adopt different pricing between channels.
This led to some intermediaries expressing concerns that some consumers might ‘steal’ advice. For example, they would speak to an adviser to get a recommendation only to then buy the product execution-only, avoiding any advice fee.
Others also warned that changes could skew the market towards online intermediaries with small panels.
However the watchdog dismissed these concerns in its latest policy paper.
It said: “We welcome the support for this proposal and will go ahead as proposed.
“The potential risk of price-sensitive consumers taking cheaper execution-only deals exists currently, as some firms already price differently.
“The Mortgages Market Study (MMS) found that some consumers who were confident to choose a mortgage themselves found it difficult to do so because they were diverted to advice, [or] execution-only sale channels were not easy to use.
“We hope this change, alongside others in this PS, will encourage firms to invest in marketing their execution-only sales and making these channels more accessible.
“The risk of consumers using the advice from an intermediary to make an execution-only purchase already exists.
“Firms can choose to manage this risk, for example through their charging structure.”
On the online intermediary front the FCA also said it did not feel the need for further guidance.
It said: “Online intermediaries need to comply with our initial disclosure requirements including their scope of service.
“We think the same commercial incentives for having wide panels will apply to online intermediaries as they do for traditional intermediaries.
“Firms must ensure the way they communicate the price difference to consumers is clear, fair and not misleading.
“We don’t consider there is a need for further guidance on how this is done.”
