FCA Authorisation for Mortgage Brokers

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About This Sector

Specialist FCA authorisation support for mortgage brokers, mortgage advisers and home finance intermediaries.

Businesses seeking to advise on or arrange regulated mortgages must have the appropriate regulatory permissions or operate under a valid appointed representative arrangement.

The FCA expects applicants to demonstrate that their business model, adviser competence, governance arrangements and customer-facing procedures meet the applicable regulatory standards.

Alumni Compliance Solutions helps mortgage brokers prepare for FCA authorisation. Drawing on experience gained within the FCA, our consultants assist with permission assessments, regulatory business plans, supporting documentation and the application process.

We help you establish the requirements relevant to your mortgage business and prepare an application that explains how it will operate in practice.

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Common Challenges for Mortgage Brokers

Identifying the Correct Mortgage Permissions

Mortgage advisers and intermediaries may require permissions for advising on and arranging regulated mortgage contracts.

The position depends on the services provided, including whether the business arranges first-charge mortgages, second-charge mortgages or specialist home finance products.

We help identify the permissions relevant to your proposed activities.

Demonstrating Adviser Competence

The FCA expects mortgage businesses to have appropriately qualified and competent advisers, with arrangements for training, supervision and monitoring.

Applicants must explain who will provide advice, how their work will be overseen and how the firm will ensure that recommendations are suitable for customers.

Meeting Consumer Duty Requirements

Mortgage intermediaries must demonstrate how they will deliver good customer outcomes.

This includes appropriate advice, clear disclosures, fair value, effective customer support and consideration of customers in vulnerable circumstances.

The FCA also expects firms to manage risks arising from introducers, lead generators and other customer acquisition arrangements.

Preparing Appropriate Governance and Financial Information

Mortgage broker applications require supporting evidence of the firm’s financial position, management arrangements and operational readiness.

The regulatory business plan must explain the proposed services, revenue model, adviser responsibilities, compliance arrangements and how the firm intends to meet ongoing requirements.

How We Help

Practical regulatory assistance for businesses establishing or expanding mortgage intermediary operations.

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Mortgage Broker FCA Authorisation

We assess your proposed activities and establish the permissions required for your mortgage business.

This includes reviewing your customer journey, advice model, mortgage products and any additional regulated services you intend to provide.

We can also explain the regulatory differences between direct FCA authorisation and operating as an appointed representative of an authorised principal.

Related service: FCA Authorisation Services

FCA Application Preparation

We help prepare the documentation needed to support your mortgage broker authorisation application.

Our assistance includes regulatory business plans, financial forecasts, management information, compliance policies and supporting evidence concerning adviser competence and customer-facing processes.

We also assist with the relevant FCA Connect forms and responses to regulatory information requests.

The application should demonstrate how your proposed arrangements will operate, not merely state that policies will be established.

Mortgage Compliance and Consumer Duty

Mortgage brokers must maintain appropriate procedures for advising customers, providing disclosures, handling complaints and monitoring customer outcomes.

We help firms review compliance arrangements, address gaps and develop relevant policies and procedures.

Our support can also cover changes to permissions, regulatory notifications and other compliance requirements as the business develops.

Related services: Policy Review, Gap Analysis & Drafting; FCA Permissions & Notifications

How It Works

1. Review Your Mortgage Business

We assess your intended services, mortgage products, customer types, adviser arrangements and operating model.

2. Establish the Required Permissions

We identify the relevant regulated activities and the financial, governance and compliance requirements associated with your proposed business.

3. Prepare the FCA Application

We assist with application forms, the regulatory business plan, financial information, compliance documentation and supporting evidence.

4. Support Regulatory Assessment

We help address FCA follow-up questions and requests for further information during the authorisation process.

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Our Clients Say

Fantastic service and support! I cannot recommend enough, Alumni Compliance were always on hand and ensured our journey through a very complex process was simple and straight forward.

William Colthart, Director

Our Clients Say

Alumni is a professional firm. They supported us all the way and were very responsive. We managed to get authorised by the FCA quicker than planned. Definitely recommended for any firm looking for FCA Authorisation or compliance in general.

Mohammed Ragab, Director, AMS Cars Ltd

Frequently Asked Questions

Mortgage brokers carrying out regulated mortgage activities generally need direct FCA authorisation or an appropriate appointed representative arrangement with an authorised principal.

The regulatory requirements depend on the advice and intermediary services provided.

A mortgage broker commonly requires permissions to advise on and arrange regulated mortgage contracts.

The precise permissions depend on the activities performed. Additional requirements may apply where the firm provides other regulated financial services or specialist home finance products.

Yes. A mortgage brokerage can operate as an appointed representative where an authorised principal has agreed to accept responsibility for the relevant activities.

The arrangement must be properly established before regulated business begins. The principal remains responsible for oversight of the activities covered by the appointment.

Lifetime mortgages and other equity release arrangements can involve additional regulatory and adviser competence requirements.

A business intending to provide these services should establish whether its permissions, qualifications and compliance arrangements are appropriate before undertaking the activity.

Yes, where their activities fall within its scope.

Mortgage brokers must be able to demonstrate how they support good customer outcomes, including through suitable recommendations, understandable communications, fair value and appropriate customer support.

The FCA generally requires a regulatory business plan, financial forecasts, application forms and relevant supporting policies and procedures.

Applicants must also provide information about senior management, adviser competence, customer acquisition, supervision and their approach to meeting the Consumer Duty.

The FCA generally aims to assess complete applications under the Financial Services and Markets Act within six months.

Incomplete applications can take up to twelve months. The actual period depends on the application’s completeness and any additional information required during assessment.

Talk to us today

FCA regulation and compliance can be complex, but we will help you navigate the process, allowing you to expand your business and create new revenue streams.

Contact us to talk to our friendly team about your requirements.

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