The regulator has reported the number of authorised firms has increased by almost 15,000 since regulation. The report revealed the number increased by 14,479 to 24,423 as a result of mortgage and general insurance regulation with 566 withdrawing their applications during the process.
The number of approved persons rose from 139,337 to 165,587.
The regulator has published its annual report for the year 2004/05 assessing its progress under each of its three main aims: to promote efficient, orderly and fair financial markets both wholesale and retail; to help the retail customer for financial services obtain a fair deal; and to improve business capability and effectiveness so as to make the FSA easier to do business with.
FSA chairman Callum McCarthy said: “We are reviewing two aspects of our performance. The first is to examine the costs we impose on those we regulate, both the direct costs of the FSA and the wider costs of compliance, and whether, and if so how, these can properly be reduced.
“The second is to examine the effectiveness and fairness of our enforcement processes so that those affected receive decisions which are – and are seen to be – fair; are made promptly; and are not unnecessarily costly. All of which are in their, as well as the public’s, interest.”
Bill Warren, director of The Complete Network, said: “These figures seem realistic. I believe they pour scorn on some predictions of a mass exodus of brokers from the market.”
John Rattigan, head of compliance at Cartel, which produced research last year suggesting 80 per cent of mortgage intermediaries and IFAs were considering or planning to leave the mortgage market, said: “There are still grey areas and the figures need to be broken down further to properly assess the number of brokers who have left the market.”
