Confusion over supervision

Mortgage intermediaries and networks have been reminded that unqualified advisers will not be able to rely on external supervision to continue giving mortgage advice after December 31.

Though the Mortgage Code regulator has stressed that unqualified mortgage advisers will be able to do business on an information-only basis or through referrals to qualified advisers, confusion exists over some networks&#39 intention to offer external supervision.

Under current plans, networks are allowed to supervise a client but only if it assumes responsibility for compliance as well, following the MCCB&#39s December 31 deadline.

One MCCB insider told Mortgage Strategy: “Some companies are planning to offer unqualified brokers the chance to carry on giving advice with arm&#39s length supervision. The idea that consumers will be able to get advice from an unqualified adviser hiding behind a £50-a-month firm that says it is supervising them doesn&#39t fit with what the MCCB is trying to do, i.e. to stop unqualified people giving advice.”

MCCB chief executive Luke March says: “If somebody is giving advice remotely, someone has to accept responsibility and that cannot be done remotely if the network does not accept the compliance responsibility.”