Under the Consumer Protection Code, which statement is true about broker remuneration?

• A. ensure at least 10% of annual turnover from mortgage services.
• B. not receive remuneration from a mortgage provider.
• C. ensure at least 15% of annual turnover is from mortgage services provided on a fair analysis of the market and not receive remuneration from the mortgage lender.
• D. allow customers to pay in full for the services.

Answer: (C)

The main idea is that mortgage broker remuneration must be independent of lenders and based on a market-wide, fair analysis of options, with a defined minimum contribution of mortgage-related income to the broker’s turnover. The statement that best fits the rule says: at least 15% of annual turnover must come from mortgage services, and those services must be provided after a fair analysis of the market, with the broker not receiving remuneration from the mortgage lender. This combination protects clients by ensuring the broker’s recommendations aren’t biased by lender pay and that there’s a genuine, market-based basis for the advice.

Why that matters: requiring a substantial portion of turnover from mortgage services, earned independently of lenders, ties the broker’s incentives to the quality of advice and the breadth of market comparison, rather than to a single lender’s payout. The other options fall short because they either set the wrong turnover threshold (10%), or omit the independence from lenders (the remuneration cannot come from lenders), or focus on payment terms that don’t address the Code’s push for market-based, unbiased advice.