More than 200 mortgage brokers have been struck off the Mortgage Code Compliance Board (MCCB) for failing to arrange professional indemnity cover.
Colin Harris, chairman of the MCCB, said: “We have acted decisively over this as it is important to raise professionalism and standards within the industry.”
Colin Snowdon, Verso managing director, said the MCCB was right to be tough with its members.
He said: “The only way the public will have confidence in the Mortgage Code is if it sees the MCCB use its teeth. The industry has laid down certain standards. If brokers are not able to meet those standards then they can not expect to carry on trading.”
More than 300 firms have resigned from the MCCB since the requirement to hold PI insurance was introduced in July.
Laurence Dillamore, general manager at Glenburn Insurance Brokers, said those shying away from PI cover were only delaying the inevitable.