Researchers held a series of focus groups at the Northern expo and discovered that brokers are concerned by the lack of networks to have been passed by the FSA and by the prospect of a failed relationship. If a network collapses once they’ve joined it they could be faced with the prospect of 2 years frozen commission and being out of work for 3 months.
Analysis of visitors’ registration questionnaires suggested that 21% remained undecided about whether to become directly authorised or appointed representatives in October. 16% said that they were already directly authorised, with a further 31% intending to become directly authorised. 19% have already become appointed representatives, with a further 13% intending to do so.
Lenders also face the difficult task of finding a balance between direct sales and selling through intermediaries. Some intermediaries feel threatened by the prospect of lenders also being able to approach clients through direct channels.
Chris Cummings, AMI Director said; “It is clear from the research that intermediaries are now making their plans for regulation. Since the show, we have heard that the number of "undecideds" has dropped. Our view is that intermediaries need to make up their mind about their route through regulation and get on with it. The clock is ticking and whether the route leads to direct authorisation or appointed representative status, the path can be longer than expected. We understand that it can take 6 - 8 weeks to apply to a network and go through their induction period. Anyone who has not laid their plans by August could be left out in the cold.”
The organisers Clarion Events are holding their third London Mortgage Business Expo in November this year after 5000 visitors made last year’s London event the biggest mortgage industry gathering in the UK.
