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76 brokers apply for authorisation in 2009

Some 76 mortgage brokers applied for Financial Services Authority authorisation in 2009, research from IMAS Corporate advisers shows.

It says authorisation of new firms across the wider UK financial services industry is currently at recent record lows.

Only nine mortgage brokers applied for FSA authorisation in Q4 2009, compared to 23 in Q1 2009 – a drop of over 60%.

IMAS says 2009 represented the fourth successive decline in annual net authorisations after deducting cancellations across the UK financial services industry. Total new firm authorisations are currently running at just over 25% of the peak of the most recent economic cycle in early 2007.

New joiners to the finance industry in 2009 fell significantly to 13,000 from around 20,000 new joiners in both 2007 and 2008.

However, the net decline in employment has now improved for three successive quarters, indicating that confidence appears to be recovering from the lows of early 2009.

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Guide: Johnson Fleming produces auto-enrolment checklist

For a job as big as managing the auto-enrolment changes, it’s important to know what has been completed and what still lies in front of you to give you the reassurance that everything is in hand. Getting the planning and project management right at the outset can help you see the path ahead and ensure everyone knows their roles and responsibilities. To help with this, Johnson Fleming has produced a checklist outlining every step that needs to be taken when preparing for auto-enrolment.

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  • Tony Hall 3rd February 2010 at 9:23 pm

    Like to see if you’re all so smugly optimistic and self championing if you were to be a victim of a network collapsing and taking all of your hard earned cash with them. Then try painting such a rosy picture of such a soul destroying industry to be in. Thank god I saw the light!

  • Kathy Owen 3rd February 2010 at 12:41 pm

    I have to say I am delighted with thing the way they are. i am new to the industry, qualified May 2006 and am now self employed with a fantastic network behind me, Home of Choice. I have had they best year to date in 2009 and personally I am glad that alot of the other guys have desided its time to retire or thats its just not for them. I have had to dig in last year but I wanted it bad enough. We do not want our industry tarnished by people who wanted a quick buck and when the going got tough abandoned ship, harsh but true. Obviously there will be some genuine casualties, but I was made rudunant in 2008 but didnt give up and went alone. The business is still there if people knew were to look and that is were my network came in, being able to educate me in this area.

  • John Smith 3rd February 2010 at 8:09 am

    Hasn’t anyone heard of spell-check?

  • Jeremy Jackson 2nd February 2010 at 5:42 pm

    One thing is for sure certain Networks will survive – I know the one I am in will be there – they are brilliant – not one of the bigs boys I admit but totally professional – from what I understand they don’t want to be one of the big boys – however I am pretty sure all members doing well in the current climate – including ourselves

  • Kevin friend 2nd February 2010 at 5:23 pm

    It will be interesting to see how many Networks there are at the year end. Then look at the DA to Network % I suspect not many Networks and a big swing towards DA.

  • Richard Scott 2nd February 2010 at 5:01 pm

    I echo the comments of the last two more positive individuals. I was pushed into self employment in early 2008, by a brokerage who had taken me on an employed contract, then retracted it 5 months in. I was working for them through a network. That network took me on as a sole trader and transferred all my T&C supervision over without a break, so I had no break in writing business. For that I thank them, and for the last two years they have helped me along through tough times and let me get on doing my job and earning. Why don’t the ones who want to get out just do it instead of talking on these forums about doing it. I guess they are just whinging for effect whilst they wait for the economy to pick up, then the job will be the dog’s wotsits again.

  • Jeremy Jackson 2nd February 2010 at 4:33 pm

    Well said the last comment – I have been in the industry for over 10 years – last 3 trading with my own Company – we have 2 advisors – we have managed to write and bank the same amount for the last 3 years – been harder I admit – this year we have had our best start ever – take eveything we get as a challenge rather than a problem and it seems to work

  • Lee Harrison 2nd February 2010 at 4:01 pm

    I must say i am a rleative newcomer to the Mortgage Advisory role being self employed via the largest network. I must say I am making a comfortable living right now but working hard to acheive a new client base but guess what I have no regrets so whilst the old and bold complain about the current situation I think the bottomline is they have perhaps forgotten what hard work is and in how to go and get new business. Personally I donlt play golf on a friday afternoon I work 6 days a week 12 hours a day.. So be it I wanted it, and I can think of harder ways to make a living either on the front line of Afghanistan or running up and down a builders ladder… Pull your socks up people and get a grip!

  • Steve Brown 2nd February 2010 at 3:57 pm

    No great surprise here. Given the current availability of products it is very hard to survive as a mortgage broker. The smarter ones are looking to move into broader financial advice and the others who were just in the industry while there were good times and selling was easy are looking to leave to find an easier life elsewhere. Will they be missed? I don’t think so.

  • Sid 2nd February 2010 at 3:55 pm

    FSA got to wake up and face the reality. I say abolish the network & Regulate the Commercial Finance. We may just get rid of these incompetent so call advisers.

  • Vinny Parker 2nd February 2010 at 3:27 pm

    Obviously no one cares about financial advisors whether in a job or not. The FSA seem to want to see us all out of jobs as they do absolutely nothing to help or support us during these tough times.

    All the FSA want to do is pick holes in small firms and prosicute them to show their strength (which I would call bullying). Admittedly there are still bad apples in this industry and I would like to see them dealt with and removed, but some of what they are doing at the moment to good & Honest advisors is appauling. They need to concentrate on the real offenders, the lenders who get away with treating customers and advisor awfully day after day without a care in the word because it is too big a job for the FSA to deal with and they just cannot be bothered.

    I cant wait to leave this industry. As soon as I get the right opportunity I am gone! However, I will still have to look over my shoulder for the rest of my life due to the 15 year long stop rules not applying. What a great industry to be in, not!

  • Paul Day 2nd February 2010 at 3:24 pm

    Q1 of any year will always see the highest number of applications to become DA – Just by the very nature that the FSA charges for a full year running from April to April. Although the numbers are lower than anyone would like to see I suspect strongly that many who have been considering DA wait until they get the best value for their money i.e. a full year which is what they pay for, and there will be an increased number for Q1 this year. It has been tough trading but we must have bottomed out now, better times are around the corner, or is that just blind optomism?

  • Gordon McNeill - IN Partnership 2nd February 2010 at 3:10 pm

    LAX – Please do not tar all networks with the same brush. I’m sure you would object to being called a cowboy!! a term much of the industry has used in respect of mortgage brokers in the recent past.

    Doing proper due dilegence on the network you are considering joining is more important that jumping at the cheapest option. The proof of this is in the pudding.

    Those networks who continue to cut their margins in order to be attractive will continue to fail. Get into the right network and you will have nothing to complain about.

  • Chris birchall 2nd February 2010 at 3:06 pm

    For 18 months I have read about declining numbers of Financial & mortgage advisers in the UK, but does anybody actually care what has happened to these people. The government has pumped money into car manufacturers, created the scrapage scheme and saved jobs as a result, but the money pumped into Lenders has been gobbled up by them, they have not used that money to maintain availability of products for the public to purchase houses or refinance, hense a flagging building industry and more threat of repossessions as refinance solutions are not available. But with limited financial solutions means a downturn in business and advisers going out of business. Where is the rescue package for the advisers to weather the storm. we are the forgotten people that no one cares about. Lenders have treated advisers with no regard what so ever but I blame the government and FSA for letting them get away with it. Big businesses can cut back and grow when the demand comes back, small one man band business can not, but it is the public who will miss out in the end as help in the future is going to come from a small choice of providers.

  • john 2nd February 2010 at 3:02 pm

    Astonished that it is as many as that!

    Most of us are looking for an escape route!

  • John O'Hearne 2nd February 2010 at 3:01 pm

    As one of the 76 I would agree with the comments about Networks. It seems that some Networks work to their own rules and are accountable to no one. The FSA are powerless to act in disputes invloving commissons even if a client has entered into an agreement with thier advising believing that adviser is to be paid fairly for the work they have done so much for TCF!

  • John O'Hearne 2nd February 2010 at 3:01 pm

    As one of the 76 I would agree with the comments about Networks. It seems that some Networks work to their own rules and are accountable to no one. The FSA are powerless to act in disputes invloving commissons even if a client has entered into an agreement with thier advising believing that adviser is to be paid fairly for the work they have done so much for TCF!

  • Lax 2nd February 2010 at 2:55 pm

    I would be interesting to know how many of those brokers were new to the industry. My guesss is lot of them will have been with networks who have gone either administration or are struggling. I know so many borkers are fed up with networks due to the way networks operate.