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MCCB admits only 60% will hit exam deadline

The Mortgage Code Compliance Board has revealed that just 50,000 of the 84,000 advisers registered will qualify by its December 31 exam deadline.

The MCCB believes this figure is sufficient to protect the public.

But broker franchise Mortgageforce warns there could be consumer detriment if it is mainly independent brokers who are forced out rather than those working for banks and building societies. It also points to the danger of unqualified brokers switching to advise on buy to let or second-charge mortgages which are not to be regulated by the FSA.

Speaking at the launch of the MCCB&#39s annual report on the HMS Belfast in London, chief executive Luke March said about 50 per cent of advisers, totalling 37,204, had passed the Cemap or Maq exams.

But the voluntary regulator says it estimates that only a total of between 50,000 and 55,000 will have passed by the end of the year, leaving about 30,000 brokers without the qualifications.

March attacked the proposal in the FSA&#39s CP146 paper to introduce filtered questions for mortgage sales, defined as information rather than advice, labelling them a “recipe for total disaster”.

He said although there is an opportunity to consult fully on CP146, it will be difficult as there is not yet one trade association representing the industry.

March believes the alliance between Aifa and the National Association of Mortgage Brokers and Advisers will only fill this role if Aifa takes the lead.

The MCCB will shut down when FSA regulation starts in 2004 and it has set aside £815,000 for closure costs.

March said: “One-man bands, around 8,000 of which are registered, need our support. The transition will be horrendous for those which have no experience of the FSA.”

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