View more on these topics

NAMBA consults members on appointed rep proposals

The National Association of Mortgage Brokers and Advisers is consulting members on FSA proposals for appointed representatives.

Charles Gooding, chairman of NAMBA, says: “The FSA has published CP159, its consultation on appointed representatives, extending the current regime. It is essential that all mortgage intermediaries read this paper because it creates a new regime for mortgage advice and does not solely apply to those firms and individuals who are appointed representatives in today&#39s investment market.

“The key issue, that first appeared in FSMA 2000, is that firms may not be directly authorised for some activities and an appointed representative for others. CP159 confirms that this rule will also apply to mortgages. It will require special consideration by mortgage brokers who are currently only authorised by the MCCB.

Gooding continues: “The FSA is proposing that those firms who act as appointed representatives will be able to have different principals in defined categories of the investment business, mortgages and general insurance markets.”

The FSA proposes that a firm could have a different principal for each one of 13 categories of substitutable products across the three industry sectors of mortgages, investment business and general insurance.

Gooding adds: “For mortgage intermediaries this means, for example, that a firm could have a different principal for its regulated mortgage business and a different principal for its life and pensions business. We will be asking mortgage advisers to comment on the proposed &#39substitutable product categories&#39 and whether this gives them sufficient flexibility to operate their businesses efficiently.

“Advisers will also have to come to terms with the statutory requirement that firms cannot be directly authorised for some activities and an appointed representative for others. ”

He says: “When this is added to the anticipated outcome of the depolarisation consultation, all intermediaries will have plenty to think about.”

NAMBA will prepare its formal response to CP159 after assessing feedback from members.

Recommended

Opinion divided on stock market recovery

Opinion is divided as to whether equity markets will rally or decline further in the New Year, says market expert Surrenda Link. Whatever happens to the FTSE 100, there will be consequences for the housing market. A rally in share prices could take investment cash away from buy-to-let. But if advisers cannot predict the bottom […]

Prescott to curb Right to Buy next week

Council tenants will see their dreams of owning their homes dashed next week when John Prescott curbs the Right to Buy scheme. Sources in the Office of the Deputy Prime Minister say Mr Prescott will next week announce plans to halve discounts in property hotspots, claiming the action is necessary to stop developers. The moves, […]

Savills flags up dangers of MIG

Independent mortgage broker Savills Private Finance is warning would-be borrowers to be wary of lenders charging punitive Mortgage Indemnity Guarantee. While most lenders only charge MIG on loans above 90% LTV if at all, some, including Capital Homes Loans, Amber Home Loans and Lambeth Building Society, charge MIG on LTVs of 75%. Mark Harris, director […]

2.5 million adults switch to offset banking

Nearly 2.5 million adults in the UK have switched to offset banking so far, reveals research by ICM for Intelligent Finance. A further 10 million UK banking customers who don&#39t currently use it say they would consider a switch to a bank that offers offset in 2003. Grenville Turner, chief executive of Intelligent Finance, says: […]

A guide to automatic re-enrolment

Since the introduction of auto-enrolment in 2012, it has been a popular topic in the press. Recent media focus has been geared towards small and micro employers; however attention is set to return to the UK’s largest businesses as they prepare for re-enrolment. Johnson Fleming has produced a useful guide that provides essential information to help you […]

Newsletter

News and expert analysis straight to your inbox

Sign up