The FSA has admitted that its new mortgage requirements will cost IFAs
more than twice as much as lenders despite the decision not to regulate
Speaking at last week's Council of Mortgage Lenders' conference in
Birming-ham, FSA head of mortgage regulation Sarah Wil-son said the
regulator's pre-sale disclosure req-uirements will cost IFAs almost
£19 for every mortgage arranged.
But she confirmed that the disclosure regulation will only cost lenders –
which will be regulated directly – less than £9 for every loan
The news has come as a double blow for IFAs following the publication of
the FSA's draft mortgage rules which shocked the industry by pressing ahead
with proposals for lenders to monitor the disclosure of intermediaries.
Mortgage Code Compli-ance Board chief executive Luke March says the FSA
has got it wrong by stinging IFAs for regulatory costs when only lenders
will be regulated.
Charcol believes the rules will hit smaller brokers the hardest as
econ-omies of scale will mean they incur disproportionately high costs
which could see them forced out of the market.
Mortgageforce managing director Rob Clifford says: “These are serious
figures the FSA is proposing. Yet again, brokers will be forced to pick up
the tab as a result of regulation.”