Industry questions Treasury&#39s &#39modest&#39 costs

The Treasury says that it will take into account the cost of implementing the regulatory regime for both lenders and brokers, writes Helen McCormick.

Most respondents agreed advice should be regulated – provided the approach taken by the FSA was “proportionate”. But many believe that it is not possible to state categorically “that the costs of changing from one system to another will be relatively modest”.

Mike Fitzgerald, sales director at Brentwood-based IFA Brentchase Financial Services, says: “Lenders will be looking to see how they can speed up processes. Efficiency will have to be improved to help to contain costs, which can only benefit intermediaries.”

Ray Boulger, senior technical manager at Charcol, says: “Costs will be more significant for smaller brokers, yet another reason why we will no longer see small players in the mortgage market, combined with the fact that they might not feel it is worth their while taking the exams.”