Mortgage advisers have swung back in favour of direct authorisation by the Financial Services Authority (FSA), according to a straw poll conducted among intermediaries attending The Mortgage Event 2003.
Following the publication of the application fee levels for mortgage and general insurance firms by the FSA earlier this month there has been a sea change in opinion among advisers with 60% now favouring direct authorisation, and just 30% committed to becoming an appointed representative. The remaining 10% remain undecided.
The change has been partly attributed to the FSA’s decision to split up the fee bands into four bands instead of three, with fees dependent on annual income. The new bands are £0m-£1m, £1m-£3m, £3m-£25m, and £25m plus.
Chris Cummings, director of AMI, warned that future announcements could tip the balance the other way: “The FSA has said the minimum annual fee looks to be around £750 per year. However, the AR route will not be without costs and its important that firms consider both sides of the equation before deciding.”