The Association of Mortgage Intermediaries has reminded brokers that they will be committing a criminal offence from Mortgage Day if they advise clients after this date without direct authorisation by the FSA or through a network.
Firms seeking direct authorisation from the FSA have less than one week to submit their application before the regulator's April 30 deadline expires.
It warns that firms who miss the deadline will forfeit the FSA's guarantee to review applications in time for 'Mortgage Day'. Firms that fail to submit their application in time will face an anxious wait if they have not received approval by that date.
Chris Cummings, director of AMI, says: “The FSA has guaranteed that applications will be reviewed and decided upon within six months – and in time for Mortgage Day. From Friday, this window of reassurance will disappear.
“Brokers who haven't received FSA permission or made alternative arrangements will not be able to advise on mortgages from Mortgage Day. Those planning to do so should save themselves the stress and sleepless nights by getting their application completed in full and on time.”
To help intermediaries make the transition to statutory regulation, AMI has produced a series of factsheets covering all the options open to mortgage firms. For those seeking direct authorisation, factsheets covering, new PII and capital requirements, how to plan a 'Mortgage Code to FSA' compliance project and guidance on choosing a compliance consultant, are available.
Firms applying for appointed representative status or opting to become introducer-only can benefit from the ད Questions To Ask A Network' and 'Introducers and Introducer Appointed Representatives' factsheets. Members also have access to the AMI Helpdesk to resolve troublesome issues.