The Association of Independent Financial Advisers and the National Association of Mortgage Brokers & Advisers have agreed to form a strategic alliance.
The objective is to build an effective trade body, which will represent mortgage intermediaries.
NAMBA asked AIFA to become involved because it wishes to draw on AIFA's direct experience of setting up a trade association which represents intermediaries.
As regulation of the mortgage sector draws ever nearer, mortgage intermediaries urgently need representation to Government and the FSA on the formulation of policies and rules for the industry. AIFA has considerable experience to offer NAMBA in this area.
Financing of the trade association will come from the mortgage industry. NAMBA has secured initial sponsorship from several sources.
AIFA's income from membership will not be used to finance the starting-up and on-going costs of the association.
Tony Ward, chairman of the Intermediary Mortgage Lender's Association, says: “We've been working behind the scenes to get a solution that is acceptable to the industry and I think that AIFA where seen as a strong contender and had been for some months.
“Looking at AIFA and the possible impact CP121 would have on it I think it makes enormous sense for it to take on this role.
“NAMBA initially attracted a lot of negative support. However they have moved on enormously in the last few weeks and months and they're difficult to ignore.
“They have a membership and have tried to set a trade body up.
“This is an obvious solution to take that work forward and form a new trade body.
“You can't have more than one trade body and AIFA and Namba have agreed to form a stratergic alliance to form a trade body. It would have been nice to have sorted this out before CP146 but at the end of the day at least we're moving forward and IMLA has had a lot of involvement in making sure that this is done properly.”