TMO has also exclusively revealed to Mortgage Introducer the results of a survey it carried out in January.
Of the 359 brokers questioned, 52 per cent had decided which route to take for regulation, with 70 per cent heading for directly authorised status and 23 per cent keen to become ARs. Only three per cent would continue as introducers.
Stuart Johnson, TMO sales director, said the last six months had seen a definite broker swing towards being directly authorised by the FSA.
Johnsons said TMO would offer a menu of compliance services for directly authorised firms, with the costs detailed below.
TMO complaince service menu and costs
Menu
Unit cost sole trader(£ per annum) Unit cost two advisers(£ per annum) Unit costthree advisers(£ per annum)
TMOS and TMOS Compliance Assistant 400 500 600
Compliance manual 190 190 190
Training and Competence manual 135 135 135
Compliance update newsletters 25
25 25
Document pack 60 60 60
Six-monthly health check ** 1,200 2,400 3,600
E-learning CPD programme 70 140 210
Quarterly training workshops 510 1020 1530
Full menu with discount £2,590 £4,470 £6,350
Total cost £2,208(£184 per month) £3,804(£317 per month) £5,400(£450 per month)
Key: ** Travel and accomodation not included in fixed price.
Firms will also be offered a compliance and advertising checking helpline billed at between 60 and 70 pence a minute.
ARs are to be charged an initial application fee of £100, which is refunded if the application is successful. Each firm has a standard monthly fixed fee of £75 a month, plus £40 for each additional adviser. There is also a charge of 5 per cent of all proc fees.
Members of both networks will be tied in for an initial period of twelve months followed by a three-month notice period.
Commenting on the announcement Sally Laker, managing director of Mortgage Intelligence, said: “It is a good development for brokers that more networks are making their fees available, but with a 12-month initial tie-in to this package brokers will have to be sure if they do sign up.”
