UK brokers are deluding themselves if they believe they have several months to complete the paperwork necessary to become directly authorised by the FSA on October 31, says Amity Direct.
The packager is warning that the real deadline is April 30 and time is running out fast.
Julie Hamilton, operations director at Amity Direct, says: “The FSA is recommending that brokers allow six months for applications to be approved. But at this late stage, just 4,000 applications have been registered to become directly authorised, out of a potential ninety thousand intermediaries in the mortgage and IFA markets. The FSA is likely to be swamped with last-minute applications.”
Amity Direct has launched an 'apply By April' authorisation awareness campaign to target all brokers on their databases with a specialised service to help them complete the FSA documentation by April 30.
Hamilton adds: “At 40 plus pages long, for a sole trader the FSA application document is not something that can be completed without deliberation. Many intermediaries have found that the process has taken time, and required detailed research often exposing shortcoming in processes required by the FSA.
“Brokers should not be intimidated - Amity intends to make direct authorisation a user friendly process, and it will make sure that its intermediaries have the support they need to complete their applications by the real deadline - April 30.”
Amity Direct has set up a free 'FSA Authorisation Helpdesk' which any mortgage intermediary can access to help with their direct authorisation applications. The service will allow brokers to informally discuss the process with advice on compliance, legal and regulatory requirements.