You are here: Home - News -

Consultation paper proposes brokers become Appointed Representatives

  • 16/12/2002
  • 0
The latest consultation paper to be issued by the Financial Services Authority (FSA) regarding the f...

The latest consultation paper to be issued by the Financial Services Authority (FSA) regarding the future of mortgage intermediaries concerns amendments to its Appointed Representatives (AR) regulations.

Consultation paper 159 (CP159) proposes the extension of the AR regime to allow mortgage brokers to become AR’s rather than remain directly authorised. As ARs, brokers will act as an agent for a ‘principal’ who remains authorised by the FSA and takes responsibility for the representative’s activities. Regulatory requirements will be enforced indirectly through the principal. However, ARs cannot remain engaged in regulated activities and restrictions could be placed on the number of principals a firm has.

The FSA has proposed adopting a ‘multiple principal’ approach. This will allow ARs to have the same principal for ‘substitutable product categories’, but they must have the same principal for business falling within each category. It has identified 13 product categories across the investment, insurance and mortgage sectors, but only two apply to mortgages.

James Mayne, head of strategic development at Brit- annic Money, said: ‘The biggest issue concerns the life offices. Life companies look after their tied sales forces at the moment on the life side. I can see them setting up support businesses to look after their sales force on the mortgage side. It is too much of an opportunity to influence distribution.’

The full document is available from the FSA, and over the coming months Mortgage Solutions will be continuing its Regulatory Response Campaign on behalf of the mortgage broker community.

Over the next few issues Mortgage Solutions will analyse the document and is inviting readers to contact the magazine with their responses. The results will be collated and submitted to the FSA on your behalf.

The deadline for responses to the consultation is 31 March 2003. To look at, or download, CP159 visit

To respond to the Regulatory Response Campaign, email


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Abolition of polarisation will allow better choice of products

The Financial Services Auth- ority (FSA) is to it proceed with the abolition of the polarisation reg...