Chris Cummings, director of mortgages at the Association of Mortgage Intermediaries (AMI) said it was still too soon to draw any conclusions on the majority of networks looking for Principal status.
“Networks are large complex organisations,” he said. “It’s more than likely that few, if any, will have received their MTA this time. It typically takes the FSA three months to approve a new firm – so we may not see networks getting through this stage until the Summer.”
Brokers may still be disappointed that the FSA will not be ‘shining a light’ into the network sector. Especially with many intermediaries finding it hard to grasp the complexities of the new Principal propositions due to the intense competition and brinkmanship of solution-providers competing for their attention.
But the FSA insists that the process between application and authorisation will remain confidential.
Robin Gordon-Walker, spokesman at the FSA, said: “We can’t discuss an application until it is approved, but those with Principal status can use their MTA letters to firm up relations with future business partners.”
But Sally Laker, managing director of Mortgage Intelligence, cautioned: “The message to brokers is, don’t leave it too late. It’s key that brokers have everything in place, including IT functionality and induction courses, to give them an understanding of what’s expected to create a seamless transition.”
However, AMI will be offering prospective Principals a chance to list their MTA status on its website.
But Cummings said the website can’t go live until Principals with MTAs come forward and added that some may simply choose not to.
So far, the FSA has received around 15,000 registrations for application packs and 5,000 applications, the majority from mortgage firms.
