Sinclair made the claim on Wednesday afternoon at the Mortgage Business Expo.
He said the average broker will spend £6,000 worth of time dealing with compliance per year, £9,000 on compliance functions and £3,200 on various regulatory and compensation bodies. He put the total cost of complying with the Mortgage Market Review rules at £20,000 per adviser a year.
AMI plans to submit these numbers to the FSA next week as part of its response to the MMR as well as taking the figures to Treasury Select Committee MPs.
Sinclair told brokers at the Expo, outraged at the mounting costs of MMR compliance, that MPs “shared brokers’ view”.
He said: “I think when the government and MPs hear about this their response will be fairly stark. I don’t think they’ll be happy about it.”
Sinclair also said that he thought while the FSA did a “fairly good job of writing regulation” they “did a crap job supervising” the mortgage market in the past.
He said that fraudulent behaviour in the past and the market’s inability to self-regulate in the boom years had forced the FSA to the extremities of the MMR.
“I think we’re going to have to swallow that pain and I regret it,” he said. “That is the stick we are being beaten with now.”
