Abbey for Intermediaries will not apply to the FSA for Principal Status, under Statutory Regulation being introduced for mortgage business in October. Instead, it is set to re-launch its mortgage club, The Mortgage Alliance, to offer an off-the-peg solution for intermediaries who wish to become Authorised Principals under regulation.
Talking of the decision not to opt for Authorised Principal status Ambrose McGinn, Director of Abbey for Intermediaries said "We don’t compete with our customers, it’s as simple as that. By not setting up in direct competition with IFAs and networks that choose the directly regulated route, we are underlining our pledge to deliver support exactly where it is needed within the intermediary market. The vehicle we have chosen to do this is our hugely successful mortgage club The Mortgage Alliance. It has pedigree and track record that can only be enhanced as we add new and better facilities for our member IFAs."
A range of new benefits will be unveiled by The Mortgage Alliance over the next few weeks and will include new lenders, access to training, enhanced sourcing systems and first class communications.
The Mortgage Alliance will also offer an exclusive deal to Authorised Principals of sufficient size that will allow them to brand The Mortgage Alliance service with their own company name and logo.
This means that Authorised Principals effectively have a market-leading mortgage solution that they can promote under their own brand, without the time, cost and hassle of setting one up.
The decision by Abbey for Intermediaries complements the work of intermediaries and helps them to retain control over their own business, according to Mark Evans, Head of The Mortgage Alliance. He said:
"The Mortgage Alliance is ideal for brokers who are directly regulating. We offer a comprehensive (and growing) panel of lenders, top rates of fees, exclusive products and a customised sourcing system. The bespoke solution offered by The Mortgage Alliance is ideally suited to Appointed Principals, helping them present a professional and credible service to their clients. We aim to provide exactly the type of support intermediaries will need under Statutory Regulation."
