Directly Authorised (DA) mortgage and protection advisers in the UK are regulated by the Financial Conduct Authority (FCA) directly and retain full independence over their business. While there are many upsides of being a DA, it is a status that also comes with additional responsibilities and burdens, particularly in terms of regulatory reporting, risk management, and compliance.
Many DA advisers choose to switch their status to appointed representative (AR) by becoming part of a trusted and well-respected mortgage and protection network. To understand why many DA advisers, choose to make this move, it’s helpful to look at some of the practical advantages of joining a network.
The regulatory burden is significantly lower
As mortgage and protection networks will take on much of the regulatory and compliance responsibility, an AR will experience a much lighter compliance workload. This can free up valuable time which can be better invested into delivering high quality customer experiences and developing strategies to help the business achieve its goals.
While a DA adviser will need to spend time applying directly to the FCA for permissions and ensuring that they’re meeting critical regulatory and legal guidelines, AR advisers have a built-in level of security and protection that can provide some much-needed breathing room.
It’s also worth noting here that regulation and compliance requirements across the mortgage sector are also constantly evolving to keep consumers safe. This means that there is substantial pressure on DAs to keep up to date with these developments and adjust their processes as needed. Networks take on the responsibility of collating and sharing information with their member firms, further reducing the burden.
Annual costs are lower
While AR firms do pay a fee to their mortgage network, these costs are often lower and more predictable than those faced by a DA firm. DAs are required to pay an annual authorisation fee, as well as cover the costs of professional indemnity insurance, compliance fees, and the additional technologies needed to keep their business running smoothly.
Not all mortgage and protection networks operate using the same fee structure, Stonebridge utilises a ‘pay as you earn’ model, which empowers members to focus on building their business and removes the need for them to worry about how they’re going to cover their overheads each month.
Networks offer easy access to valuable resources and advanced technology
From training to technology, lender panels and more, being part of a mortgage network enables firms to access valuable resources and purpose-built software that makes it easier to continually deliver the best possible experiences to each one of their customers.
Stonebridge provides every member with access to its wholly-owned mortgage broker technology, Revolution, which is an all-encompassing solution that handles everything from initial customer onboarding to customer communications after completion. High quality technology can significantly streamline the day-to-day tasks of advisers, so if you’re looking to join a mortgage network, it’s vital to ensure the technology that you’ll gain access to will meet your needs.
Advisers benefit from business growth and development guidance
With so much on their plates, DA advisers often don’t have the time, connections or resources to seek out business development guidance from experts. As part of the Stonebridge network, all members have access to a dedicated business development team, who have the ability to work with AR advisers to devise robust strategies that will enable them to reach their goals and objectives.
Additional flexibility and peace of mind
Ultimately, being part of a mortgage network allows advisers to spend more time focusing on their customers and delivering appropriate advice rather than being bogged down with complex operational or regulatory issues.
If now is the right time for you to join a mortgage network, ensure that you’re taking time to evaluate all of your options in detail to find the right network for you and your business needs.
If you are considering a move but want to talk it through first, our experienced recruitment team is on hand to discuss your circumstances, explain how the network works, and help you decide what level of support is right for you and your business.
