Size certainly doesn’t matter when it comes to regulation

From Richard Griffiths
“Size doesn’t matter as much as quality,” says Justine Tomlinson of Mortgage Next in a letter to Mortgage Strategy. “Size really doesn’t matter,” says Gerry O’Brien of Home of Choice in the June issue of Mortgage Distributor.

Here we go again, I thought. Along with the Ascot and Wimbledon, the sporting pastime of June seems to be everyone having a whinge at Network Data for being the largest mortgage network.

But I was wrong. O’Brien’s article looked at the Financial Services Authority’s attitude to directly authorised firms and its clear message that no firm is too small to fall below its radar in the regulations stakes.

But I do feel it worthwhile to also reiterate that the larger networks offer a genuine ‘whole of market’ offering on mortgage products with absolutely no loss of independence of the broker firm to select the mortgage product, or insurance product, best suited to the client.

The buying power of the large networks is such that even after they take their slice of the procuration fee cake the amount paid to the broker firm is more than they could negotiate as a directly authorised firm or the procuration fees available through some mortgage clubs.

Richard Griffiths,

chief executive,

Network Data Holdings