Mortgage News
Poll: Brokers, have you recently considered changing your regulatory status?
Being directly authorised (DA) or an appointed representative (AR) has long been an ongoing debate in the mortgage broker space.
There are advantages and disadvantages to both. Those brokers that go down the DA route say that they have more control over their business and avoid network fees and commission cuts.
Brokers can access mortgage clubs and support services, manage their own compliance and expenses and lower their personal indemnity insurance payments.
However, with Consumer Duty putting even more regulatory pressure on DAs, who already have to directly report into the Financial Conduct Authority (FCA) and take ownership over compliance, this has made being a DA even more of a challenge.
Going down the AR route means there is structure, processes and oversight in place, but sometimes networks can have restrictions in place in terms of permissions for certain kinds of advice, which, in a world of increasing complexity, could be a disadvantage.
With all these complex currents, this month, Mortgage Solutions wanted to ask whether brokers are considering changing their regulatory status.
Industry, not regulation, must lead later life lending change
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