Mortgage, general insurance and protection service provider Mortgage Support Network has joined forces with compliance services firm SimplyBiz to create Mortgage Support Direct, targeting brokers opting for direct authorisation.
SimplyBiz, set up in 2000 by DBS founder Ken Davy and the UK's third largest compliance services provider, and MSN already have 1,000 member firms and 2,000 advisers. The aim now is to recruit a further 2,000 firms.
MSD says it will offer competitive proc fees and life commissions, comprehensive compliance and regulatory support, and will help brokers complete FSA applications.
Members will be able to track their FSA applications online, access a bespoke compliance and training and scheme and also have access to regulation updates and mortgage placement helpdesk facilities.
MSD FSA application assistance and regulatory compliance services are offered for 2.5% of turnover with a minimum fee of £105 per month. There are no additional charges for accessing the mortgage and life providers and commissions are paid direct. If member brokers fail to get approved by the FSA their fee will be waived.
With the FSA's application deadline of April 30 now less than a month away Ken Davy, chairman of SimplyBiz, says he hopes brokers learn from the harsh experience of IFAs 15 years ago and do not leave it too late.
He says: “Brokers must act now if they wish to apply direct to the FSA. The deadline date for applications is almost upon us and should your application be submitted inaccurately or beyond April 30 then the FSA will not guarantee you a decision in time for regulation starting. Without a positive response you could be unable to trade.”