With the credit crunch continuing to cause brokers a problem due to lenders pulling products at short notice, and uncertainty surrounding the implementation of the Financial Services Authority’s (FSA), ‘Treating Customers Fairly’ (TCF) guidelines, Richard Farr, associate director at the Association of Mortgage Intermediaries (AMI), and a number of other market commentators have concluded that networks will see a rise in appointed representative (AR) applications.
Farr said: “We could see a shift from directly authorised (DA) status to AR status in the small firms territory if some are bamboozled by the imminent TCF management information requirement.”
This statement was confirmed by Darryl Barnett, compliance director at Vision Network, who said: “The increased FSA activity around the supervision of smaller firms in general will make smaller DA brokers seriously consider the network proposition.
"Where once some felt that they may slip under the radar, suddenly they are under the spotlight. This will only increase as the FSA’s TCF work gathers pace.
“The larger networks are able to provide adequate resource to all compliance requirements – including TCF – to ensure that their ARs adhere to all the FSA initiatives currently set in place, or in the process of being initiated.”
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