Enable was the first mortgage network to announce its Variation of Permission (VOP) letter which arrived on 25 June shortly followed by six other network announcements.
The letters give these seven networks (see box above) a good indication that their applications for regulatory status will succeed, unless any significant changes to the company emerge. The FSA said it expected to to issue a ‘substantial number of network decisions over the next five weeks’.
Equally, those with MTA letters are likely to be able to capitalise on a short-term recruitment advantage.
Mike Allison, managing director of Personal Touch Insurance, said: “We anticipate that this news will provide a major boost to our objective of recruiting intermediaries as appointed representatives (ARs) of our Financial Services Supermarket.”
Pink Home Loans managing director, Tony Jones, said: “Our plans to recruit 300 appointed representatives to form a quality network can now go full-steam ahead.”
Industry commentators originally expressed concern that IFA networks would receive their VOP letters prior to the mortgage and insurance applicants receiving their MTAs due to more experienced processing teams and prior authorisation but the seven firms publicising their letters show this not to be the case.
The Association of Mortgage Intermediaries (AMI) has claimed this as a personal ‘win’ for the trade body with networks such as Pink Home Loans and BDS Mortgage Desk winning early approval from a standing start in comparison with pre-regulated entities like Legal & General and Bankhall.
The first batch of MTA letters were sent out to firms seeking direct authorisation at the end of April. To date, over 2,314 applicants have received MTA letters and 1,320 have received VOP letters.
Networks promoting their MTA letters
Legal & General
Enable
Sage & Trinon
Pink Home Loans
Bankhall
BDS Mortgage Desk
Personal Touch
At the time of writing (29 June)
