Legal & General (L&G) has confirmed it will be applying for principal status as part of its plans for the statutory regulation of mortgages and general insurance by the Financial Services Authority (FSA).
Graham Newitt, managing director, intermediary solutions at L&G, said: “L&G has a proven track record of helping its business partners cope effectively with regulatory change. We are providing continuity through this change in the marketplace.
“L&G has taken a measured and sound approach to the development of its proposition and we are now in a position to talk to our business partners about their future with us in this new environment. We are developing point of sale risk management systems and the financial arrangements to ensure the service will be delivered compliantly, economically and efficiently in 2004 and beyond.”
L&G joins other mortgage clubs who have already announced they will apply for principal status, including Zurich, Mortgage Next and Mortgage Intelligence. However, two of its closest competitors, Prudential and Norwich Union, are still to declare their intentions.
John Malone, national mortgage manager at Prudential’s Premier Mortgage Service, said: “Regulation always brings opportunities and creates changes. In my experience a few extra months at the planning stage creates a better business for the benefit of all.”