After an angry question from a broker in the audience at The Mortgage Expo in Olympia, Sinclair listed costs including regulation, the Ombudsman Service and Professional Indemnity insurance, which totalled £3,200.
He said for advisers regulated through a firm offering added services like compliance checking the costs can add up to £9,000 per adviser plus another £6,000 for working hours lost to compliance paperwork.
“Evidently, an adviser will have to make £20,000 profit before he or she begins to generate income,” said Sinclair.
“When we tell the Treasury Select Committee about this, they will not be happy,” he said.
Sinclair said when you look at some of the historic cases of mortgage fraud which were waved through he said the industry is hard pressed to defend itself against the advance of regulation.
“This is the stick we are now being beaten with,” he said.
“We are about to give the FSA these facts and data and I hope that will help our cause,” he added.
