The Government still intends to expand the appointed representative regime to the mortgage market according to the Treasury's response to its consultation published today.
It says no respondents had a fundamental objective to this proposal but some were concerned with the detailed rules around the regime. It says these matters are for the FSA to consult on.
It will respond to concerns that under the Financial Services & Markets Act, an adviser cannot be both an authorised person and an AR of an authorised person which may restrict consumer choice.
Many independent mortgage advisers currently have access to the whole range of mortgage products, but are also appointed reps of one life insurance company.
Such independent mortgage brokers would need to make a choice between being authorised and giving up AR status for life products, or becoming an AR of a mortgage lender.