Matthew Bright Optoma Broker Solutions

There are varying reports in the market about the response that advisers have had from the Financial Services Authority (FSA) in applying for direct authorisation. Our experience was a good one, we were acknowledged on the day and received all necessary forms in a timely fashion. Others I know have not been so fortunate.

One well respected firm have registered and had an electronic acknowledgement, the FSA now have no knowledge of their application nor of the fact they acknowledged it at all.

Two further organisations have registered and are still chasing acknowledgement; the FSA I understand are now quoting two weeks, but our anecdotal experience is different. Why doesn’t the FSA acknowledge this position and publish clarification to those firms who have registered.

Has the FSA underestimated the task? Given the importance to so many firms of getting authorised, it would be a brave man to speak out against them publicly for fear of retribution and being ‘put to the bottom of the pile’. So honestly, of course they are completely geared up, they are just experiencing a couple of initial glitches.

Andy Frankish

Mortgage Talk

At the earliest opportunity, Mortgage Talk applied online for direct authorisation but, even though the 31 March deadline is fast approaching, we have still not received our application form – just a notification that our request has been acknowledged.

At Mortgage Talk, our main concern though is that, with an organisation of our size, we anticipate that it could take some time to complete the application form.

We hear that the FSA has reassured the Association of Mortgage Intermediaries that it has the necessary mechanisms in place to handle the anticipated volume of applications, but that remains to be seen.

As for those seeking AR status, it will be impossible for appointed representatives to be authorised before their networks are, causing an even bigger bottleneck in the processing of applications.

So, bearing in mind that the FSA only has between now and October to approve these applications, we would appreciate some further assurance from the FSA that it can cope with the number of applications it will be facing.

Mark Mountney

Premier Mortgage Management

There have been some negative comments concerning apparent delays at the FSA relating to the initial registration for application and the subsequent applications themselves. Our own experiences show the contrary.

We have always been able to get a reasonable response to all communications, bearing in mind we are talking about a large bureaucracy here.

Is it reasonable to expect an immediate response considering the volumes they are dealing with? Is an immediate response necessary? I doubt it, and I suspect that the staggering of the formal release of the online application process was deliberate to assess volumes and to test their systems in an orderly manner.

It is unlikely that they have badly judged such matters. Other issues maybe, but not the application processes so far. Perhaps we should try working with the FSA as opposed to bashing them at every opportunity.

Kevin Duffy

Hamptons International Mortgages

The Hamptons/Square Mile alliance will place over £1bn worth of mortgage finance this year so direct authorisation selects itself. We have just received our online application, which in itself is less terrifying than many network commentators were forecasting.

However, I have been saying for some time that more brokers than originally imagined would end up going direct. And once the user-friendliness of the application becomes known this will convince some of those still undecided to take the direct approach.

The FSA showed foresight in establishing a nine-month window for applications and by promoting an online option. That said, it worries me that many brokerages may still wait to see which networks get authorised quickly and then act accordingly.

Come September there is going to be a rash of phenomenal pricing cuts as networks who have been cleared begin to price ‘last-minute’ deals. A three-month extension would hurt nobody.

David Hollingworth

London & Country

It has only been possible to apply to the FSA for direct authorisation since 19 January, so we really are in the very early days here and it seems a bit premature to be criticising turnaround or application issues.

The FSA has always made it clear that it has six months to decide on a complete application. It is, of course, in its own interests to process applications as smoothly as possible and we have every confidence in its ability to do so.

In addition, the provision of an online application facility can only help cut down on the delays that large amounts of paper would inevitably cause.