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IFAs determined to continue after loan regulation

Regulation will not put off IFAs from doing mortgage business, according to the latest survey from George Street Research.

It interviewed 211 IFAs in May in partnership with Money Marketing. The res-ults show that only 1 per cent of the 144 mortgage advisers interviewed are not planning to continue doing mortgage business after regulation.

The FSA has sent out 1,082 variation of permission letters for mortgages or mixed business. In January, it estimated that 20,000 mortgage firms would seek authorisation and 5,000 would need to vary their permission to carry on either mortgage or general insurance business.

The poll also shows that a continuing very high level of IFAs intending to remain independent after depolarisation at 80 per cent, with only 7 per cent planning to multi-tie and 13 per cent undecided.

But 82 per cent of IFAs believe that EU requirements forcing IFAs to have £1m PI cover by January 2005 will force advisers out of business. Most say they expect to see around 16 per cent cease trading.

Chadney Bulgin partner David Thomas says: “IFAs, by their nature, have a much better handle on regulation. The people sticking their heads in the sand over whether to do mortgage business after regulation are the brokers.”

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