Nearly half of all intermediaries believe the move to principles-based regulation will lead to consolidation in the broker market.In the latest census from the Association of Mortgage Intermediaries, 44% of members say they think principles-based regulation will lead to consolidation, with more firms moving into networks and more advisers joining larger firms. In contrast, 19% of members feel this will not happen and some 36% don’t know. Rob Griffiths, associate director of AMI, says: “With the move to principles-based regulation firms may look for guidance from third parties when it comes to complying with the changing regime. “This guidance could come from various sources such as AMI, compliance consultancies, the press or networks and larger firms. As a consequence we could see more firms turning to larger players for help and this could eventually lead to market consolidation.” He adds: “The large number of ‘don’t knows’ reflects broker uncertainty about the regulator’s intentions in this area.” AMI’s July census also reveals that 39% of members believe regulation based on prin- ciples will improve things for all firms while 6% believe the move will improve things for small firms only and 14% think it will only make things better for larger firms. Some 41% of respondents don’t think it will improve things for any firms. A majority of 57% believe the regulatory shift of emphasis will bring greater uncertainty over what is and is not compliant, compared with 22% who believe it will give firms more flexibility to decide how to meet the standards of the Financial Services Authority. Griffiths adds: “The move to a principles-based regulatory regime will have a big impact on the financial services industry. “The full scope of that change has yet to be seen and it’s clear from our survey that there is uncertainty among mortgage intermediaries about principles-based regulation and the challenges and benefits it will bring.”
- Top trends
- Top trends
Mortgage Express says the Council of Mortgage Lender’s latest lending figures demonstrate just how robust the buy-to-let lending market continues to be. Gus Park, head of buy-to-let at Mortgage Express, says: As buy-to-let celebrates its tenth anniversary, the market continues to enjoy strong landlord confidence and tenant demand.Combined with the current healthy housing market, which […]
At the end of July we saw the first example of the Financial Services Authority disciplining a senior manager of a mortgage and general insurance firm for failing to carry out his duties as a director. Having experienced the initial period of grace during which the FSA allowed mortgage and general insurance firms some leeway to get themselves in order, this enforcement action against a director is a sign that a tougher stance is to be taken from now on.
Mortgage Express has launched a range of two-year fixed rate deals on self-certification mortgages.The move comes in direct response to recent broker research indicating strong consumer demand for two year deals.Key features of the fixed rate products include a 90% LTV, with a 999 fee, a pay rate of 5.49% until September 30 2008 and […]
Lenders are being urged to make their graduate and professional mortgages more innovative and market them through the intermediary cha-nnel to spur development in the sector. Although the graduate and professional mortgage market remains small, with gross advances of just 3.6bn in 2005, Datamonitor says that given the increasing number of young people going into […]
Those with decent-length memories will recall that in the 2014 Budget statement George Osborne announced the new (and entirely unexpected) pension freedoms. The new rules come fully into force in less than two weeks.
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