It appears that an early on-line FSA application by an average sized firm will cost £500. Annual mortgage PI costs are around the same figure and the annual FSA fee will be around £750. Adding another possible £500 for the Financial Service Ombudsman scheme will take the potential FSA related costs to around £2,250.
Commenting Nick Baxter (Mortgage Promotions Director) said, “The costs of FSA regulation are becoming clear and there is no reason why the cost of direct authorisation should constrain anyone into become an appointed representative. Sure the costs of the FSA will be more than those of the MCCB, but they do not make direct authorisation impossible even for sole traders.
Nick Baxter added, "It is interesting, we talk about Tax Freedom Day where the average UK resident has earned every penny need to support government expenditure – it will be on the 7th of June next year! Working on the same basis an average mortgage writer doing only one mortgage a day and earning an average procuration fee of say £500 per case will have paid the FSA related costs by the 5th working day of the year! FSA costs are not a reason to be frightened into becoming an appointed representative”.
