FSA considers scheme

The FSA is considering several ways of implementing the appointed representative regime to mortgage advice, despite fears it could restrict consumer choice in the market place.

Under the new regime, brokers will have to choose between direct FSA authorisation and appointed representative status, where an authorised firm will take responsibility for compliance.

CP146 indicates there may be several options. Appointed reps may be limited to a single principal for all regulated products they sell. Another option would allow different principals for mortgages, investments and general insurance. Or firms could have several principals for the same product type – allowing access to more than one lender. But firms may have to meet several conditions before becoming a principal.