Many consumers use an intermediary to help them choose and take out a mortgage. The services provided by these mortgage brokers may be provided on both an advised and non-advised basis but will require authorisation from the Financial Conduct Authority (FCA) unless an exemption or exclusion applies.
Brokers that are authorised by the FCA then need to comply with specific rules when providing those services to ensure they maintain compliance.
As a firm that’s either considering becoming a mortgage broker or already authorised as one, you should be aware of the FCA rules that apply. The rules on how you are expected to conduct your activity can largely be found in the FCA’s Mortgages and Home Finance: Conduct of Business Sourcebook (referred to as ‘MCOB’). There are also additional FCA rules that apply to all firms, including the complaint handling rules and rules on the Senior Managers and Certification Regime (SM&CR).
You should also be aware of how the different permissions apply to enable mortgage brokers to take different steps when providing its services to customers, such as by providing advice or not. Certain systems and controls should also be in place depending on a firm’s permissions to ensure that they do not breach the rules or operate outside of their permitted activities.
Mortgage brokers seeking FCA authorisation require a coherent compliance monitoring framework and must be able to demonstrate that the business model is one that meets the FCA’s requirements. They should also be aware of specific requirements that must be satisfied to become authorised including the need for Professional Indemnity Insurance and a minimum capital resource requirement. Those in control or who will have management responsibilities within the firm must also be suitable and appropriate.
Appointed Representatives and Principal Firms
Once you are directly authorised by the FCA you can allow non-authorised firms to use your authorisation to conduct regulated activities under your supervision. Under this sort of arrangement, you would be known as the Principle Firm and they would be your Appointed Representatives.
How can Scott Robert help you?
Interested in becoming authorised by the FCA or maintaining compliance as an FCA authorised firm? Scott Robert can help, whether it is for FCA authorisation, or ongoing compliance needs.
If you are looking to become authorised by the FCA, Scott Robert can help.
Each applicant who works with Scott Robert is assigned a dedicated Regulatory Adviser who will support you throughout your application, answering queries you may have relating to the application and providing you with guidance and support.
The process starts with a fact find between yourself and one of our Regulatory Advisors where we’ll get to know you and your business and how you intend to provide your services.
We will provide you with advice and guidance on how to comply with the FCA’s requirements and identify any risks.
We will then produce for you a series of documents to support your application and help ensure that you become authorised. These documents include a Regulatory Business Plan and Compliance Monitoring Plan. We also produce a compliance manual for you containing documentation for you to implement into your business upon authorisation to help enable you to comply with the FCA’s requirements.
An online application will then be completed along with all relevant forms, which will then be submitted to the FCA. Should there be any FCA questions, your Regulatory Adviser will work with you to draft a full response.
In short, we’re here for our clients every step of the way. We provide our clients with the benefit of our knowledge and experience to not only help ensure that your application is successful, but that your business has the right foundations to ensure positive customer outcomes.
Ongoing FCA Compliance
As an FCA authorised person or firm, you might need help to ensure you comply with the FCA’s rules.
We provide our clients with support they need to maintain compliance and avoid breaching the rules. Our bespoke service is individually tailored to each of our client’s requirements and objectives to help them meet in the best way possible.
Whether you need documentation to help you remain compliant, want ongoing advice or support, impartial monitoring of your activities or anything else, Scott Robert may be able to help.
Why Choose Scott Robert?
Scott Robert has been supporting firms through the FCA compliance process since 2008. In that time, we have helped hundreds of businesses to successfully gain and retain FCA authorisation.
We employ a team of compliance professionals who are both highly experienced and expertly skilled. We specialise in providing our clients with solutions to often complex regulatory requirements and compliance needs.
Our knowledge of FCA compliance enables our team to support you and your business, provide effective solutions to any problems you face and help you to devise and implement strategies that work for your business and your customers.
Conducting regulated activities without the correct authorisation is a criminal offence, speak to one of our experts today for confidential and no obligation advice regarding FCA authorisation.
If you want to know more amount becoming FCA authorised or maintaining authorisation as an FCA authorised firm, speak to one of our experts today for confidential and no obligation advice by calling 0161 413 2796 to find out more.