The Mortgage Code Compliance Board has indicated that the number of brokers opting for direct authorisation will be almost double the FSA's original anticipated figure of 7,000.
Brad Baker, head of communications at the MCCB, tells Mortgage Strategy that the board expects the majority of brokers to take the DA route rather than join networks.
He says: “The indications are that there are more firms going down the directly authorised route than was originally anticipated.
“The FSA expected around 7,000 advisers to go direct but numbers so far indicate this will be exceeded. Most firms want freedom in the way they conduct their business and in which products they can choose.”
A spokeswoman at the FSA says: “We can't break down the figures yet to see how many brokers will be going direct but we are doing an analysis of the numbers as we go along.
“We have already received around 13,500 registrations from mortgage and general insurance firms and expect the total number of firms opting for direct authorisation to be around 25,000.”
Mike Fitzgerald, sales director at Essex-based Brentchase Financial Services, says: “We've spoken to a number of brokers and a lot are going for the directly authorised route.
“To us, it seems that about three times more advisers are opting to go direct rather than to become appointed representatives of networks.”