Richard Griffiths, managing director of Network Data, who has been monitoring the AR numbers since 'Mortgage Day' told Mortgage Introducer: "Between the end of March to the end of June there has been just under a 10 per cent rise in ARs compared to the first quarter of the year.
"This can be calculated as an annual rise of around 30 per cent. If you look at the IFA market, its AR yearly growth has been around 30 to 40 per cent, so the figures tally well."
Payam Azadi, head of marketing at The Mortgage Times Group, agreed that the figures seemed correct. "I think that with increased regulation more and more brokers are opting for the channel that gives them more support."
"However, another question to be asked is how many are leaving AR status? Although there has been a definite increase in AR numbers, smaller networks are finding it harder to cope with the regulatory and service needs," he added.
Tony Corrigan, managing director of Classic Network Solutions, said: "With 'General Insurance (GI) Day' in January a lot of brokers that previously only dealt with insurance had to become ARs, so this bought an influx. With the FSA looming the reality of what is needed is hitting home with directly authorised firms."
Bill Warren, director of The Complete Network, said the figure is not unrealistic and is a likely result of some brokers still deciding between AR and DA status even after 'Mortgage Day'.
"We have seen an 11 per cent increase in AR numbers since regulation. What needs to be remembered is it is not about chasing numbers but rather the volume of business these ARs bring in," Warren said.
