Being directly authorised (DA) or an appointed representative (AR) has long been an ongoing debate in the mortgage broker space.
There are advantages and disadvantages to both. Those brokers that go down the DA route say that they have more control over their business and avoid network fees and commission cuts.
Brokers can access mortgage clubs and support services, manage their own compliance and expenses and lower their personal indemnity insurance payments.
However, with Consumer Duty putting even more regulatory pressure on DAs, who already have to directly report into the Financial Conduct Authority (FCA) and take ownership over compliance, this has made being a DA even more of a challenge.
Going down the AR route means there is structure, processes and oversight in place, but sometimes networks can have restrictions in place in terms of permissions for certain kinds of advice, which, in a world of increasing complexity, could be a disadvantage.
With all these complex currents, this month, Mortgage Solutions wanted to ask whether brokers are considering changing their regulatory status.
Brokers, have you recently considered changing your regulatory status?
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
