The regulatory changes become effective on 21 March 2016 although firms are able to start adopting the rules from this week. However, 55 per cent of brokers surveyed were said they were aware of the new regulations indicating a need for more communication across the industry about the MCD.
When asked if they had started to prepare for the changes, 71 per cent said ‘No’, meaning that with just seven months to go to the new regulation deadline, there is still a lot of work to be done in the broker market for them to be ready and knowledgeable for their clients.
Sonny Gosai (pictured), sales and operations manager at Clever Lending, said: “The survey results confirm what we have feared all along, that with the clock ticking it’s even more essential that the secured loans sector needs to provide the education and training required to deliver MCD through the broker network.
“Clever Lending’s own plans are well ahead of schedule in terms of systems and implementing the new administration. We’re also in close contact with our lending partners so we can co-ordinate our communications going forward.
“We also have to remember the end user in this scenario, the customer, and provide assistance for brokers to make them fully aware of the new requirements as they apply for loans early in 2016. Handling pipeline cases will be key in this and very clear messages will need to be produced across the industry.”
Speaking at last week’s Financial Services Expo in London, Keith Hale, technical mortgage specialist at the Financial Conduct Authority outlined a number of key areas which firms would have to be fully aware of in order to continue trading compliantly.