Brokers told to cover all options

The FSA has advised brokers to fill in an application for both direct authorisation and AR status in case their network fails to get authorised.

Responding to broker concerns at the Mortgage Business Expo that the majority of principals have yet to gain FSA authorisation, Susan De Mont, manager for high street firms at the FSA, told delegates: “We recognise that brokers who want to join a network may not know until late January whether their principal has secured authorisation.

“This is why firms should have a contingency plan. Your application for direct authorisation can always be withdrawn if your network gets authorised.”

But FSA spokesperson, Kate Bristowe, tells Mortgage Strategy that fees received for direct authorisation will not be refunded.