Intermediaries are gearing up for incoming regulation with the establishment and expansion of referral and compliance operations, to gain business from those not meeting the new standards.
To this end, Jim White’s Mortgage Solutions has established a packaging, advice and recommendation service for intermediaries. White said: ‘Following the recent tightening of the compliance regulations covering mortgage advice, IFAs may be unwilling to advise clients about the best product for them. Because all our mortgage advisers are CeMAP qualified, we can now take the burden of responsibility away from IFAs by offering best advice on a wide range of products in an area of the market where traditional advisers may not be fully acquainted.’
The service will be two tier, enabling IFAs qualified in the mortgage arena to give advice direct to their clients but use the packaging service, while those not in a position to give advice can pass the client on to have their mortgage needs fulfilled.
White added: ‘This means the IFA can develop further financial services business with the client, while he continues to receive his share of the procuration fee.’ White said the amount paid for introducing the business would be up to 1% of the loan involved depending on the product and lender used.
Another company looking to benefit from the new standards is Bankhall’s Point One, which has appointed ex-MCCB compliance investigator Colin Francis to strengthen its compliance proposition.
Sales director Shaun Godfrey commented: ‘We already do compliance for almost 3,000 firms and see the incoming FSA regulation as a massive opportunity given our experience.’