Passing business leads requires FSA authorisation - AMI

Introducers passing on mortgage business leads will not be required to be regulated under the FSA regime in certain cases but all other types of regulated financial business will require introducers to hold FSA authorisation, according to guidance from the AMI.

From October 31st, any mortgage introducer which presents mortgage leads – which are secondary or coincidental to their own existing business - will not be required to gain FSA authorisation providing they are passing that lead to a directly authorised firm, an Appointed Rep (AR) of a directly authorised firm or an authorised overseas firm.

However, anyone who passes on a simple business lead linked to the general insurance market will be required to hold FSA authorisation from next January – once GI regulation comes into force – says the Association of Mortgage Intermediaries.

It is confusion around the interpretation of introducers and an introducer appointed rep (IAR) which led the AMI to put out a briefing explaining the difference between introducers and IARs, says Chris Cummings, chairman of the AMI, as many advisers are perhaps not fully aware they need to be regulated under the FSA to pass on client leads to other advisers - in all cases except mortgage intermediation.

Under the guidance offered in the AMI's FactSheet 9 - Introducers and Introducer Appointed Representatives: what are they? - intermediaries can establish which sections of FSA regulations explaining rules they have to follow, and why.

For more information, contact the AMI.

IFAonline