Network Data has announced a specialist niche service to support smaller mortgage packagers that do not wish to become directly regulated by the Financial Services Authority (FSA).
It proposes small packagers become ‘appointed principals’ of Network Data, thus saving all the costs associated with being directly regulated. CP159, refers to directly authorised ‘principal’ firms and their ‘appointed representatives’. The ‘appointed principals’ will then sign-up their own brokers and pass on the benefits of appointed representative status. These brokers will themselves be tied to the ‘appointed principal’ firm.
Alex Cotton, head of sales and marketing at Network Data, said: ‘Packagers will have access to our lending panel, so although they will be tied to us and operating under our registration number, in general they are likely to gain from the deal. The only other option is for them to be directly regulated.’
She added: ‘We are already in meetings with half a dozen packagers, discussing their requirements in detail. There is, to an extent, only one way of complying, so each packager will have similar arrangements but we acknowledge packagers are different sizes and work in different ways.’ As part of the deal, packagers will also be given packaging software, professional indemnity insurance, MortgageLink sourcing software and LIA Membership.