Most mortgage brokers are not using back-office or customer relations management (CRM) systems to manage their business, according to Mortgage Brain.
The company says firms may fail to meet with FSA requirements unless they ensure they have adequate control and compliance systems in place.
However, a survey of over 1,000 mortgage intermediaries found 57% are still not using back-office and CRM technology.
This is despite the FSA continually warning firms of the importance of having adequate systems in place to meet regulatory requirements, and making heavy use of promotional campaigns.
Mark Lofthouse, CEO of Mortgage Brain, explains: “These latest figures clearly show that there are still mortgage advisers out there who don’t appear to have suitable systems and processes in place to meet regulatory requirements.”
He says it is vital to have robust technology in place to allow firms to demonstrate their compliance with regulation, and to show they are treating their customers fairly.
The FSA has already announced it will step up its enforcement actions and monitoring activities and Lofthouse says firms must ensure the entire mortgage sales process is adequately documented for all customers.
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