View more on these topics

Profits plummet after M-day

Nearly half of brokers have seen profits fall since M-Day, says Alliance & Leicester in a survey which also finds that many appointed reps are considering switching to direct regulation.

The A&L mortgage broker survey, conducted in early January, interviewed 59 randomly selected brokers 100 days after mortgage regulation began.

Forty-four per cent say that profits have fallen and 47 per cent need to increase turnover to achieve their previous level of profitability.

Key fact illustrations have lengthened the admin process, with 45 per cent of brokers saying it now takes over two hours more than previously and 47 per cent believe KFIs provide no real value for the consumer.

A&L head of intermediary mortgages Mehrdad Yousefi says: “Regulation has been a mini-revolution in the mortgage industry. It is apparent from our research that some brokers are still adapting to life in a regulated environment. It is too early to make a conclusive judgement. It will be interesting to revisit this issue towards the end of the year.”

Ninety per cent of directly regulated brokers felt they had selected the right route to business while only 54 per cent of brokers who opted for appointed representative status felt it was right for them. Fifteen per cent of brokers who have become appointed reps are considering switching to direct status. Twenty-three per cent of ARs say it was initially easier to become registered as appointed rep.

London & Country mortgage adviser David Hollingworth says: “For smaller brokers, the new administrative elements will slow down the number of cases they can handle. But regulation has been brought in to gain the confidence of consumers,and regardless of the size of your operation, that has to be the focus.”


Second chance

Many years ago,I contracted out of the state earnings-related pension scheme and since then I have received annual statements which serve to do nothing more than remind me of the suggestion that at some point it will be prudent to contract back into Serps. Can you advise me of when this should be done?

Pensions Simplification reminder from FSA

The FSA has urged IFAs to think about standards of advice and professional development as part of its pensions simplication programme.In a newsletter to retail intermediaries, regulators asked IFAs to think about the changes they needed to make for pensions tax changes.The FSA is continuing to talk with the Association of British Insurers and the […]

CAF launch equity tracker for the voluntary sector

The Charities Aid Foundation and Legal & General are to launch an investment fund exclusively for the voluntary sector.The CAF UK Equitrack fund, to be managed by L&G, aims to track the FTSE all-share index, offering not-for-profit organisations exposure to UK equities. The annual management charge is 0.25 per cent, with a minimum investment of […]

Exodus from endowments

The number of endowment policies in force has fallen by nearly three million in the last three years, according to a report by the ABI.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm