The mortgage packager code looks unlikely to go ahead following the news last week that staff at Savills Lending Solutions have been placed into consultation.
Savills Private Finance, the parent company of SLS, has not confirmed that the business is to shut but it is widely thought that the consultation process will result in the closure of the packager.
Rob Jupp, managing director of SLS, played a big part in the packager task force that the Association of Mortgage Intermediaries recently reformed to debate the future regulation of the sector ahead of the regulator’s Mortgage Market Review.
Robert Sinclair, director of AMI, says: “Jupp’s departure will make things difficult. Packagers will continue to operate in the market but they are likely to have to do so under a regime whereby the principal firm is regulated by the Financial Services Authority.”
He adds that until the market gets final rulings from the FSA with regard to distribution and the individual registration of brokers the role of packagers will remain unclear.
Jupp, formerly managing director of Personal Touch Packaging, joined Savills in September 2008 to launch SLS.
Simon Jones, director of SPF, says: “The specialist market has been hit hard and due to continuing difficult trading conditions we have entered a period of consultation with all employees.”
David Shortt, former director of Goldsmith Williams, says: “This is devastating news for Jupp and his team. He is a hard-working, upstanding and professional person and it’s a shame this has happened.
“He has a huge number of friends in the industry and his reputation precedes him. He’s also a sensible person so I imagine he will take his time to ensure he’s making the right decision before he accepts a job offer.”