Financial product commission ban in force: what fee will you pay?

Internet firms which sell financial service products are geared up to take on the big banks and insurance companies now the ban on commission is in force, the Financieele Dagblad reports.

The replacement of variable commission (provisies) by fixed fees means consumers will now pay greater attention to the price, service and quality of the advice they are given, the paper is quoted as saying by BNR radio.
‘The battle has started,’ Diederick van Thiel, founder of online mortgage broker EyeOpen told the paper. ‘Over the past month, the big banks have published their fees. And you can see, for example, that Rabobank has knocked €600 off its fees for internet-based advice.’
Intermediaries and agents will be looking for fees of €2,000 to €3,000 for their advice, Van Thiel said. ‘Digital advice can be much cheaper, so consumers have a real choice,’ he said.
Research has shown most people don’t want to pay anything for financial advice, Van Thiel told the paper. ‘But if you explain it can lead to savings of €30,000 on a mortgage, then they are willing to pay… but the average consumer wants to pay below €1,000.’
Pieter Lalkens, FD reporter, says consumers will also have to get used to paying banks for recommending their own products. ‘Banks will have to make it very clear why their advice is as good as that of an independent advisor,’ he is quoted as saying by BNR.
Earlier stories
Market leader Rabobank opens mortgage advice war
ING to charge consumers €2,100 for mortgage advice
Financial advisors fear effect of commission ban
How much are you willing to pay a bank to advise you on a mortgage or life insurance policy?

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