You are here: Home - News -

Letter

by:
  • 06/06/2002
  • 0
I have always believed that regulation of any form is a type of restricted practice ' a monopoly ' ...

I have always believed that regulation of any form is a type of restricted practice ‘ a monopoly ‘ and that it almost always involves increased costs due to the accompanying increase in compliance. The only people who will make money out of this will be larger brokers, PI insurance providers, the FSA, lenders, and compliance officers. The rest of the players (smaller brokers) are generally considered as ‘the fall guys’. And all this is happening in the name of consumer protection.

I recently read a report in the press that the Financial Ombudsman is requesting all brokers join the scheme now, so that it would be easier when regulation is finally implemented in 2004.

The Financial Ombudsman also pointed out the fees that will be involved in such a scheme. Obviously this will add costs to any mortgage business. Furthermore, if you remember, the initial press reports (when the MMCB first came into being) said that procuration fees will ‘sky rocket’, but has this happened?

No. The procuration fee is still meagre ‘ around £150 per case. However, the increased fees have now had to be passed on to the consumer ‘ so much so for the consumer protection!

I would hasten to add: ‘I told you so!’

Kind regards

Sohan Jheeta

PIPS


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @OTJournalist: “As the reality of April’s tax changes starts to bite, the proportion of deals available to limited companies has grown d…
  • RT @OTJournalist: "Mortgage industry faces a conundrum. It needs to embrace technology to give consumers more choice & efficiency but fears…
  • RT @MtgSearchGo: Buy-to-let product numbers for limited companies doubled in 12 months - #Mortgage Solutions https://t.co/722e3F6YFi via @m
Read previous post:
Your career is in your hands

Richard Hall, head of Newcastle-based packager Best Advice Mortgage Centre, has come out with a rath...

Close