Networks have dismissed broker concerns that the cost to appointed representatives of joining networks will be driven up if more brokers than expected opt to become directly authorised. But they are also refusing to guarantee their prices will not change.
Last week the MCCB indicated that the number of brokers opting for direct authorisation will be almost double the FSA's original anticipated figure of 7,000 while the FSA says it is expecting another peak in application levels in the run-up to its April 30 deadline.
Mike Fitzgerald, sales director at Brentchase Financial Services, says: “A lot more brokers are going for the direct route than was forecast. This could have a negative effect for the networks – even the major ones – the majority of whom have already come out with their pricing.”
And Rob Clifford, managing director of mortgageforce, says: ” All the networks have said how many AR numbers they're looking for. If these numbers turn out to be lower in reality there's no question that it will have an impact on their pricing.
Sally Laker, managing director of Mortgage Intelligence, says: “We can't guarantee our prices won't ever change but we say – these are our fees and we don't see them changing in the foreseeable future. At this point it is difficult to judge what route most brokers will be taking.”
And Richard Griffiths, managing director of Network Data, says: ” We have a set price of £80 per month for each firm plus £40 for each additional adviser. We're confident we'll get the numbers we estimated but it would be stupid to guarantee that our prices won't ever change.”