The Mortgage Code Compliance Board has published its annual report for 2003. The report shows that 60,000 individuals have passed an accredited examination, now compulsory for mortgage advisers. It also shows that MCCB's annual income is approximately £4.7m, primarily levied from fees on lender and intermediary registered firms. Sixty per cent of the MCCB's annual expenditure is attributed to compliance monitoring and enforcement, 30 per cent to registration services and 10 per cent to central overheads.
The MCCB says that its principal liability in the future will be redundancy costs once it becomes obsolete with the start of FSA mortgage regulation. It has established a provision of £836,000 for this purpose. It says there is a further potential liability in respect of the outstanding leases on its premises but this is not expected to exceed £500,000.
Chairman Colin Harris says: “I strongly believe that this annual report clearly demonstrates the significant value MCCB has provided to both the consumer and the industry – in terms of protection and raising standards and the industry's reputation. It remains our firm intention to maintain that value right up to 30 October 2004 so that consumers remain protected and we can ensure an effective handover to the FSA.
On behalf of the Board, I would like to thank our Chief Executive, Luke March and all our staff for their outstanding efforts over the last twelve months. I know that the skills, expertise and knowledge of our staff – built up as a result of the industry's investment in the Mortgage Code and MCCB – will be in great demand in the future. They certainly deserve to be.”