Staff Reporter
In its attempt to ban exit fees, the government have in actual fact banned acquisition costs, a mistake that will cost the non-banks, one industry figure has claimed.
Speaking with The Adviser, Provident Capital head of distribution lending Steve Sampson said the exit fee ban was a mistake that the industry will now have to live with.
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“I think the government made a mistake and didn’t quite understand what they were banning,” Mr Sampson said.
“They wanted to ban exit fees, but what they effectively did was ban acquisition costs.”
Banks traditionally get acquisition costs back from brokers by clawing back commissions.
“So they banned the economic cost, not the exit fee,” Mr Sampson said.
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