FSA withdraws Network Data permissions

The Financial Services Authority has withdrawn Network Data Limited’s permissions to carry on regulated activities.

The network has been given one day to notify its appointed representatives of the decision and provide the regulator with a copy of the written advice sent to ARs.

The FSA has also requested a list of Network Data’s ARs.

It has also given all Network Data’s ARs three days to notify their customers for regulated business that they are no longer permitted to conduct regulated business on behalf of Network Data.

Alan Nadin, managing director at Manchester-based firm Executive Mortgage Services, says: “Shame all round, no doubt it will be the smaller brokerages that will be the most affected by this.

“What support is being given to them? You just cannot cut off those with families and financial commitments without transitional support.”

He adds: “Hopefully other networks will pick up the ARs and get them in a position to trade again as soon as possible.”

One Network Data AR, who asked not to be named, says: “Network Data was looking to find a buyer but who would buy a network that isn’t regulated?”

There is speculation amongst brokers that this action by the FSA frees Network Data ARs from their contract with the company.

One Network Data quotes from his contract, which states: “This Agreement shall terminate automatically and without the need for notice if Network Data Limited ceases to be authorised to carry on regulated activities under the act.”

Network Data was unavailable for comment.

Network Data Holdings, which owns Network Data, has yet to post any announcement relating to the changes in permission on the London Stock Exchange.