Evidence compiled by the networkone business development team shows that over six out of 10 intermediaries don’t know how to attain AR or Principal status – and a similar number are unsure what limitations will be imposed on their businesses as a result of the introduction of statutory regulation.
Other key findings from data collated from 500 intermediaries included:
-70 per cent of respondents don’t know how much it will cost them to attain AR or Principal status.
- Five out of 10 said that lenders, packagers and networks had only offered “minimal” support as they prepared for the introduction of regulation.
- 25 per cent had not bothered to register for CeMAP – with many indicating that they are likely to move into the unregulated secured loan and commercial sectors in 2004.
“Our research shows that the industry has failed to educate the many thousands of brokers and IFAs who we rely upon to distribute our products to the public,” said Terry Markham, head of networkone. “The onus is on lenders, packagers and networks – and the FSA – to make a big effort to ensure that intermediaries are able to understand the facts and how the many changes are likely to impact on them.
“The fact that 50 per cent of the people we have spoken to have not received any meaningful support from a lender, packager or network is a shocking indictment on the industry. Something needs to be done to address the situation otherwise come 2004, intermediaries will be out of a job and many organisations that rely on third-party brokers and IFAs will be operating with seriosuly depleted distribution channels.”
