Finance Centre will stay a pure packager

The Finance Centre says it will remain a pure packager after mortgage regulation.

Several packagers plan to offer appointed representative status to brokers but TFC says it intends to work with network principals to provide an outsourced packaging service to complement its existing proposition.

Packagers who do not provide advice to borrowers will not be regulated by the FSA when it takes control of the mortgage market in October next year. Only broker/packagers and packagers who intend becoming principals will be regulated.

Wayne Smethurst, senior partner at The Finance Centre, says: “We have considered the options and have decided to focus on what we do best – packaging. We want to work in partnership with lenders and regulated networks to provide a quality outsourced packaging service and will continue to support intermediaries who become directly authorised.

“There is a danger that some packagers will feel pressured into becoming principals because they think they have no option. Becoming a principal is not a decision to be taken lightly and I have no doubt that some new entrants will fail through not understanding the full implications of running a network.