It is vital for firms to realise the importance of submitting complete applications for FSA authorisation by 30 April 2004, as the FSA cannot guarantee processing applications received after this date before ‘Mortgage Day’- 31 October 2004.
If a firm is not FSA authorised on ‘Mortgage Day’ or is not an appointed representative of an FSA authorised principal firm it will be unable to conduct any regulated mortgage activities – effectively it must cease trading. After ‘Mortgage Day’ it will be a criminal offence to conduct a regulated activity relating to mortgage selling or administration unless a firm has FSA authorisation.
The FSA opened its doors to applications for authorisation from mortgage and general insurance firms on 19 January 2004 and the deadline of 31 March for discounted early application fees has now passed.
If firms remain at all unsure of their chosen route – and many networks and other firms seeking principal status have yet to fully clarify their offerings for firms considering becoming appointed representatives – then MCCB states they should apply for direct authorisation, and do so by 30 April 2004 at the latest, to keep their options open.
Firms should note that the FSA will only process an application for authorisation if it is ‘complete’ – i.e. not requiring supplementary return or follow-up. Firms should therefore allow adequate time to ensure that their application is ‘complete’.
Luke March, Chief Executive of MCCB said: “I make no apology for spelling out the importance of this message on every possible occasion, given its significance to our industry. I do hope firms will take the necessary steps to ensure they retain their future in the industry, through taking appropriate action
as regards FSA authorisation.”
