The online broker research into the impact of regulation was conducted in April 2005. 607 brokers, all registered with A&L, took part in the survey.
91 per cent of ARs reported an increase in time spent on administration since regulation compared to 84 per cent of DA brokers.
62 per cent of ARs reported their overhead costs rose while 58 per cent of DAs also reported an increase. Increases in general workload were noted by 71 per cent of ARs and 70 per cent of DAs with an increase in time advising clients reported by 46 per cent of ARs and 44 per cent of DAs.
Mehrdad Yousefi, head of intermediary mortgages at A&L, said: “Our research has revealed that mortgage brokers are still finding the administration workload challenging.
“Some ARs already have experience in dealing with regulatory requirements through selling investment products; however many others haven’t had exposure to a regulated environment. It may have been a shock to successful sales people who suddenly have to become administrative experts as well.”
“Over the next 12 months it’ll be interesting to see if the FSA, lenders and brokers can work together to reduce the amount of paperwork currently required,” he added.
Rod Murdison, proprietor of Murdison & Browning, an AR of Sesame, said: “Being an AR amounts to having an extra layer between the broker firm and the regulator so I agree that this extra layer may result in extra time and administration.”
