Is this an old post unanswered? The date says 27/10/09 - today is 23/11/09.

Anyway, don't sign it. Presumably the re-mortgage has been done? And you haven't signed anything saying you'll pay him a fee? If so you could walk away and go somewhere else and it would be his tough luck. I think he's got a bit of a cheek actually. It's unlikely the fee he could have charged for the re-mortgage would have been £2000 - one of the reasons IFA's take indemnified commissions is that they generally earn more - but they carry the risk that if the policy is cancelled within 48 months they will have to repay commission on a pro rata basis. Did the broker receive anything from the lender he recommended?

I have just re-mortgaged my home and have revisited my various insurances with the broker.

In short, he has recommended a life cover/critical illness product where he receives commission of about £2000. However, he wants me to sign a letter agreeing that if I cancel within four years he will clawback the commission he has to pay back to the financial organisaiton from me.

This seems very strange indeed to me - and frankly wrong. I am, in effect, guaranteeing his commission and I don't see why I should.

I have never heard of this before - is this now industry standard practice or if I go elsewhere will I be able to get the same deal without this?