View more on these topics

Packagers must be authorised under the FSA

Packagers will have to be authorised under the FSA regulatory regime.

In a letter to the Council of Mortgage Lenders seen by Mortgage Strategy, Eleanor Linton, head of policy and technical standards at the FSA, explains that where third party administrators carry out any pre-sale activity it will be considered to be &#39arranging&#39 and an authorised activity.

She writes: “We are aware that many third party administrators also carry on a range of pre-sale activities such as making underwriting decisions and transmitting mortgage offers to the customer (or arranging variations thereof). Our view is that these activities amount to arranging under Article 25A(1) of the Regulated Activity Order and the third party administrator will need to seek authorisation.”

The letter to Kate Main, the CML&#39s senior policy adviser, was in response to queries from the trade body about outsourcing regulated activities.

Linton adds: “The fact that a firm is operating under an outsourcing agreement will not preclude it from requiring authorisation. This flows from section 19 of the FSMA which states that no person may carry on a regulated activity in the UK, or purport to do so, unless he is (a) an authorised person or (b) an exempt person. Otherwise, the consequence of section 19 is that the firm operating under an outsourcing agreement will be breaching the general prohibition and committing a criminal offence and any contracts entered into as a result of the breach would be potentially unenforceable.”

Chris Cummings, director of the Association of Mortgage Intermediaries, says: “It is concerning that this issue has been brought to a head well past the 11th hour. We have always accepted that to be exempt, &#39pure&#39 packagers would have no contact with a client. This statement makes it clear that those who have direct client contact or who make underwriting decisions must be authorised.”


Knowing the market is key to buy-to-let success

The findings say key requirements include a hard-headed business assessment of the local housing market, an intimate understanding of the requirements of tenants and thorough research into the amenities of an area.  Location is key for astute buy-to-let landlords.  Nearly three-quarters of buy-to-let properties are within 20 miles of the landlord&#39s own home as this […]

Lifelink Services receives full FSA authorisation

Director Steve Field says: “Everyone at Lifelink is delighted that we have received our part IV permission. Special thanks go to the compliance team and everyone else in the business who has worked so hard to achieve this major step forward.” Lifelink Services is the network arm of the Lifelink Group which also includes mortgage […]

Mortgage Next receives full authorisation

Martin Maynard, managing director, says: &#34It&#39s great news that Mortgage Next has received its part IV permission notice. Everyone at Mortgage Next has worked hard to prepare the business for regulation and we are now ready to provide a comprehensive support service for mortgage brokers. We can offer brokers access to market leading products supported […]

Property prices fall for third month running

The average property price fell for the third consecutive time last month, figures from the National Association of Estate Agents reveal. Over three quarters of estate agents confirmed they believe prices have reached their peak. Asking prices were on average 1.3% lower than the previous month and, further confirming the much-anticipated slowdown in the market, […]


News and expert analysis straight to your inbox

Sign up