Homeloan Partnership (HLP) has warned directly authorised (DA) firms who are worried by the likely effects of the MMR and thinking about changing to appointed representative (AR) status not to leave their decision too long or they could pay the price.
Chris Tanner, managing director of the Worthing based network, said every year firms leave it too late and end up having to pay the FSA an extra year’s fees.
He said: “It is particularly important this year with MMR hanging over the market like a pall and many DA firms considering for the first time that the burdens likely to be imposed by the MMR could make their current status untenable. I really would urge those who are thinking about moving across to AR status that this is the time to start the process. There are many cases where the decision is taken too late and firms trade through the 1 April deadline and become liable for a whole year’s fees. The FSA does not do rebates. I have often talked to firms that have wanted to move to AR status but left it too long and ended up paying for something that they no longer needed or wanted.
