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&#39M-Day rush may leave brokers out of business&#39

Mortgage brokers could be blocked from trading for months because of a regulatory bottleneck, warns Optoma Interpartners Network.

It is concerned there will be a stampede of brokers rushing to be processed as appointed representatives of networks before mortgage regulation comes in at the end of October.

Compliance director Richard Palmer says brokers are putting off registration because of pressure of work and to avoid paying compliance fees.

But he warns that if networks are swamped with thousands of applications as M-Day approaches, it could take months to get approval as ARs.

Palmer says brokers could be left unable to do business because of the time it takes for networks to carry out financial, credit and qualification checks and run the induction and training courses required under the due diligence process.

Palmer says: “At the moment, many brokers are sitting on their hands, thinking they will be able to get registered quickly. But networks will be breaking their backs to process the flood of applications and some brokers will find they will not be able to do business.”

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