View more on these topics

Warning that &#39old dinosaurs&#39 are not ready to pay proc fees

Lenders are not ready to pay procuration fees through networks because they have not sorted out their back-office systems, says Whitechurch managing director Ian McIvor.

McIvor is concerned that after speaking with various lenders, some still intend to pay procuration fees direct to mortgage intermediaries and not through networks. This in effect will mean that intermediaries will have to give the fee to the network which will then have to pay it back to the intermediary.

McIvor says lenders need to start updating their systems as soon as possible but says he suspects they are losing focus in the lead-up to M-Day.

Lenders need to replace the name of the individual broker on their system with the broker&#39s FSA number to make payment to the network possible.

McIvor says the small niche players which have had to prepare themselves from scratch seem to be ready but he says the “old dinosaurs” of the mortgage lending industry are the least prepared and warns of a knock-on impact on mortgage clubs.

Lenders say several intermediaries still have not rec-eived their FSA numbers which is slowing down the process.

Accord Mortgages sales director Ian Smith says some networks are giving lenders lists of their members. From these, a relatively small number will refer business to them so lenders are spending time unnecessarily inputting irrelevant data.

McIvor says: “Mortgage firms are behind in realising what networks are and what they have to do with ARs. They need to start thinking like the life and pension companies.”

Intelligent Finance head of intermediary sales Brian Ewing says: “It is just our fourth anniversary so we knew from the beginning that our systems would have to be designed with regulation in mind.”


Mary Francis

It is somewhat surprising to think that Mary Francis has only been director general of the Association of British Insurers since 1999. She has presided over a time of great change and left her mark not only on the financial services industry, but also on the landscape of how consumers buy and are affected by […]

Thinc buys up IFA Fenton

Multi-channel distributor Thinc Group has acquired IFA firm Fenton Financial Services as part of its expansion programme. Fenton was established in 1980 and last year it rep-orted turnover of £1.3m. The firm specialises in the corporate marketplace and group personal pensions. Thinc signed up its first multi-tie agreement with Friends Provident in September. Thinc chief […]

Marlborough caps it up

MARLBOROUGH FUND MANAGERS Marlborough UK Micro Cap Fund Type: Unit trust Aim: Income and growth by investing in UK smaller companies with a market capitalisation of less than £50m Minimum investment: Lump sum £1,000 Investment split: 100% in UK smaller companies with a market capitalisation of less than £50m Isa link: Yes Pep transfers: YesCharges: […]

FSA to probe burden of phoenix firms on FSCS

The FSA is to examine the link between phoenix firms and claims submitted to the Financial Services Compensation Scheme and Financial Ombudsman Service. The action has been welcomed by the industry, which has been greatly concerned by the recent trend for firms such as Berkeley Berry Birch to wind up subsidiaries, transfer out assets and […]

Craig Inches – thoughts on how to preserve capital and generate income in an inflationary environment

In this short video, Craig Inches, head of short rates and cash at Royal London Asset Management, offers his thoughts on how to preserve capital and generate income in an inflationary environment. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment