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Back in the days of predominantly paper-based systems, compliance and regulation was a complicated affair. Any requests by the FSA for evidence of correct selling and administration procedures often resulted in filing cabinets' worth of paper being researched and rifled through to come up with answers.

As the mortgage industry gradually began to trade electronically, compliance, within an increasingly strict FSA regime became easier. Answers could now be found at the touch of a button rather than at the bottom of a drawer.

Electronic systems and intermediaries' ability to access them have improved and evolved. While it is true the number of products available combined with the changing attitudes of lenders has played a small part in this evolution, the biggest driver has been the need for treating customers fairly through a consistent approach coupled with better and appropriate compliance to meet the stringent regulatory requirements.

Furthermore, intermediaries want to take control of their business from enquiry to commission reconciliation and at the moment, there is no better tool to meet that need than point of sale customer relationship management systems.

We are already seeing a shift within the industry where point of sale systems are now replacing mortgage sourcing systems as the primary technology-based solutions in use by mortgage intermediaries and their use and importance is set to grow in the years to come.

Put simply, they are the next big step in streamlining an intermediary's business through the adoption of technology. Designed to provide a single technology solution, point of sale systems have been around for some time but, especially within smaller firms of intermediaries, the reality of the FSA's tough new regulation programme, particularly when it comes to the treating customers fairly initiative, has taken a little time to hit home.

That is not to say the industry has not been warned. Earlier this year, the FSA criticised many advisers for not being fully compliant when it came to audit trails and said two-thirds of firms did not have the processes in place to provide suitable advice.

Even the intermediaries themselves concede the need to keep up-to-date with technology. A survey from research firm PMP revealed 83 per cent of advisers think their data storage requirements have increased significantly compared with two years ago.

More recently, Jonathan Phelan, head of retail enforcement for the FSA, said "small firms are not untouchable" and warned fines were not the only tool available to the FSA. Indeed, one firm was banned from trading during a recent crackdown.

The reasons for firms getting into trouble with the FSA are not original. Inadequate mortgage sales and advice procedures figure strongly, as do poor record keeping and failure to ensure all advisers are qualified to give advice.

Such practical demonstrations of the importance of good systems and the FSA's willingness to crackdown on firms that do not play by the rules indicate beautifully the reasons for a surge in the uptake of point of sale systems.

Perfectly equipped to ensure mortgage intermediary firms meet all the FSA's regulatory requirements, these systems have developed to cover all areas of an intermediary's mortgage business including point-of-sale, business administration, pipeline management, case tracking, commissions, marketing and reporting and archiving.

Point of sale systems have the facility to integrate with all major sourcing systems and electronic trading systems including Mortgage Brain and the Mortgage Trading Exchange.

They allow users to effectively conduct all aspects of the sale and compliance process, including initial enquiry, initial disclosure documents, fact finds, needs analysis and reasons for recommendations.

Without a doubt point of sale systems are essential and this complete management system is fast becoming the hub of all professional mortgage intermediary companies.

But before we get too carried away with compliance, let us not forget point of sale is also an invaluable sales tool. Greater access to products, streamlining the sales and administration processes surrounding mortgage advice and a single data entry approach undoubtedly leads to greater turnover and profit and should also enable advisers to strengthen relationships with their customers, partners and lenders.

It seems the mortgage industry and technology are now inextricably linked and point of sale systems have unquestionably become the essential system for advisers.

With the FSA setting more deadlines for intermediaries to show they are up the task, the popularity of point of sale systems can only increase.