The letter, shown here, arrived at Enable's offices on Friday last week. It states: “We are minded to approve your application based on the information you have given us.”
The letter means prospective appointed representatives joining the network can be confident they will be able to trade after Mortgage Day. Although not a cast iron guarantee that the network will receive authorisation, it goes on to say that “assuming there have been no material changes in the information that you have given us, we will grant your firm authorisation no later than August 2004”.
The FSA said earlier last week that it had started to issue the letters to applicants wishing to operate a network with a mortgage or general insurance permission. The letters go both to new firms (where a minded to authorise letter is issued) and, as in the case of Enable, existing authorised firms (where the letter states that the FSA is minded to vary permission).
When networks receive their MTA letter depends on when they applied and on the issues that the application raises. It also depends on the complexity of the business proposition and the speed with which the firm can answer any subsequent enquiries.
Michael Ward, managing director of Enable, says: “We are pleased to receive our minded to approve confirmation from the FSA.
“Operating as an FSA-authorised firm for some years put us in a strong position when establishing our mortgage and insurance network, Enable. This positive message will, I am sure, encourage a number of intermediaries who are as yet undecided to opt for Enable.”
The FSA says it expects to issue a substantial number of network decisions over the next six weeks.