The study showed the most popular option for packagers following regulation would be to split their businesses, creating an authorised broker and a pure packager. 39 per cent of firms indicated they were following this course of action. Those remaining as pure packagers came in at 30 per cent, with 18 per cent forming a network and 13 per cent becoming mortgage brokers.
John Maltby, IMLA chairman, said: “The fact that 100 per cent of those questioned intend to stay within the industry post-regulation is positive for the future of the packaging community and mortgage industry as a whole.”
Matt Grayson, public relations manager for BM Solutions, expressed concern over the statistics in the study. He said: “If 81.8 per cent are intending to stay pure packagers and avoid direct contact with customers, what are the other 18.2 per cent going to do?”
Sue Cox, business manager, at Bananas Inc said: “Packagers expertise will always be necessary, there is no reason why we shouldn’t be confident about our position. We will liaise solely with brokers. We are not part of the 18.2 per cent.”
Grayson cautioned that the study showed 78 per cent of packagers expected lenders to become more involved, by carrying out some sort of monitoring post-regulation: “Packagers might be kidding themselves, they may end up getting a rude awakening,” he said.
