The Association of Independent Financial Advisers (AIFA) and the National Mortgage Brokers Association (NAMBA) have agreed to form a strategic alliance and create a trade body representing mortgage intermediaries.
NAMBA asked AIFA to become involved in the creation of a trade body for mortgage brokers late last month, in a bid to draw on its direct experience of setting up an adviser based trade association.
Officials at AIFA will offer advice and support during the establishment of NAMBA, as well as lobbying key Government and regulatory bodies on behalf of the organisation. Tracey Mullins, director of public affairs at AIFA, said: ‘Our priority is to get a response in to the FSA, and we already have a structure in place for that. We will obviously consult each other, we have not decided on a joint response yet, although it seems like a good idea. Apart from that we are exploring how to share resources with NAMBA, although it must make economic and administrative sense.’
NAMBA will be responsible for the financing of the new trade association and it has already secured initial sponsorship from several sources. Charles Gooding, chairman of NAMBA said: ‘We are looking at a number of ways of gaining sponsorship. At the moment I am speaking primarily to lenders and have gained sponsorship from igroup and SunBank. NAMBA is in the interests of lenders because at least 50% of the industry’s business comes through intermediaries. There is no influence by the lenders that sponsor us, once we have the structure in place and decide what the subscriptions will be then, obviously, the membership of NAMBA will pay.’
There had been rumours that the Intermediary Mortgage Lenders Association (IMLA) would start its own broker trade body. Tony Ward, chairman of IMLA, said it had been considered a last resort. ‘We considered starting a body but it was clear early on that we were a lenders’ trade body and there was a conflict. The view was that they don’t fit well together. However, we felt it was compelling that there was a solution and if this was not resolved properly then we were prepared to make it happen.’