The network is basing its proposition on the assumption that large numbers of AR firms will look to become DA once they are comfortable with FSA regulation.
David Espin, compliance director of FMO, said: “I believe most intermediaries can manage their own compliance issues with appropriate guidance and support.”
Directly authorised firms will be offered a menu of services including a free telephone helpdesk, visits from FMO, workshops, a compliance manual and document templates for training and competence. Charges range from £110 per month for small firms to £210 for firms with up to 12 advisers.
AR firms will be charged the same fees but will have an additional turnover charge of between 6 and 10 per cent.
Tony Corrigan, managing director of Manchester-based Classic Network Solutions, commented: “I think that we will actually see brokers moving from DA to AR when the full implications of regulation kick in. We welcome more local competition in the market.”
