Neil Hall, marketing manager at Pink Home Loans, explained that if the FSA took more action with small directly authorised (DA) firms which did not have appropriate TCF procedures in place, networks would begin to see their customer base expand within the appointed representative (AR) market. Pink indicated that this could prevent some consolidation, setting the ripple in motion from DA to AR.
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However, Hall said: “If the FSA takes little action, we would expect that within 18 months the current number of networks will reduce from 26 to 20. As a network focused on providing great customer service, we are aiming to be the largest network in the market and are currently launching a campaign to get more ARs to join us. We are also open to talks with any networks who would like to work with us.”
Martin Wade, director at Mortgage Options, said: “Standards of control within DAs tend to be tighter and more strictly adhered to. TCF should be a core principle of any business and apply to ARs as they do to DAs. If anything, DA remains the best route for brokers, as long as they have the ability to put in place compliance rules.”
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