The FSA has criticised brokers who lack the online facilities needed to submit compulsory business reports, come regulation.
The Mortgage Code Compliance Board advisory group met last week to discuss the FSA's rules on company reporting requirements. Under the guidelines brokers will have to submit business reports to the FSA, with benefits for online information transfers.
But one advisory group member tells Mortgage Strategy that lender research suggests as many as one in four brokers do not have online facilities. He says: “These rules will not allow brokers to submit reports in writing or by post so this could mean extra costs for thousands of intermediaries who are not online. With 7,000 sole traders in the UK, many will be affected.”
But FSA spokesperson Kate Bristowe says: “It's difficult to imagine in this day and age that brokers can manage without online technology. Intermediaries have over a year to get hooked up to the internet, which we would urge them to do.”
Roy New, sole broker, says: “I'm shocked at these figures. Brokers just can't exist without being online. If they're not, they can't be doing their job properly or are sourcing products inadequately. These brokers may even be ringing up packagers to source products.”