Purely Mortgages chief executive Mark Chilton says consolidation will be inevitable for some of the smaller networks.
Many of the networks which submitted proposals for authorisation to the FSA have costed their business plans based on achieving a certain number of members.
Networks which are unable to get enough members will be forced to merge to cover regulation costs and maintain relationships with lenders and deals for members
Figures from the FSA website show that Network Data has 288 appointed representative firms, well ahead of nearest competitor Mortgage Next, which has 108. In third place is Professional Partnership Network with 66.
Other front runners include Optoma Inter Partners with 65 firms, then Enable with 61 then Mortgage Times 53 and Solution Network with 50.