Many organisations have declared their intention to offer themselves as Network Principals and are now recruiting Appointed Representatives, but the FSA has decided not to pre-authorise networks.
The FSA will be issuing "minded to authorise" letters following preliminary checks on networks. However, formal Part IV notices may not be sent out until 4 - 6 weeks before the start of regulation. This means mortgage intermediaries risk being put in the position where they are not clear which networks have successfully completed the application process.
AMI has long been recommending that intermediaries looking for appointed representative status should ask to see copies of the "minded to authorise" notice before committing to a particular network.
Following a new development networks that have received their "minded to authorise" letter can now list this fact on the AMI website. This service is open to all networks, at no charge, to allow intermediaries to have access to the full facts before making a choice, bringing clarity to the market.
Chris Cummings, Director of AMI comments: "The FSA is not publishing a list of the networks it has given provisional approval to — yet this is the very information intermediaries need if they are considering AR status. As AMI is an "honest broker" in the market, we can be trusted to provide this information in a non-commercial way.
"The onus is on networks to tell us if they have received their "mind to authorise" notifications and any conditions attached to them. If they do this, we will list them on our web site - and intermediaries can check it.
"We will also add to the listing when any network gets its formal Part IV authorisation - or if any is ultimately declined. This is the information intermediaries need to make a sensible business decision on which network to speak to and we want to help to provide it."
