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Proc fee fears deter potential ARs

Just under two-thirds of directly authorised brokers say that the recent spate of media stories about networks withholding proc fees is putting them off becoming appointed representatives.

The Mortgage Alliance’s latest DA broker survey shows that 58% of those who responded say such stories have reaffirmed their commitment to remaining as they are.

Only 25% stated that the issue had not affected their thoughts regarding their regulatory status.

The survey was launched by TMA to gather feedback in response to difficult trading conditions, the April deadline for DA firms to extend their Financial Services Authority permissions and concerns over proc fee payments.

The firm say the results will be used to highlight any potential worries, openings or developments in the market. TMA says it will look to address these issues.

Phil Whitehouse, head of TMA, says: “The results of our survey clearly illustrate the importance of prompt payments to brokers and highlight concern over the withholding of proc fees – an issue that has been infuriating brokers in the past few months.

“Prompt payment of proc fees and commission for ancillary sales remains a key requirement for the intermediary market.”


FSA says documentation standards have risen

The Financial Services Authority says it has noted an improvement in the quality of Key Features Documents since September 2007 when it challenged companies on the issue.

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.


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