Direct Life and Pension Services is to seek principal status from the FSA as it starts a mortgage and insurance network.
Sales and marketing director Richard Verdin says the new venture, Enable, will offer all the regular network services including a mortgage club and free mortgage sourcing, plus access to products from leading UK insurers, household insurance and income protection cover.
Verdin says its mortgage protection products will include accident and sickness benefits for the length of the mortgage and unemployment benefits payable for up to 12 months.
Product pricing will be comparable with ASU competitors and there will be an initial free cover period. Commission will be equal to six years of commission on a typical ASU product, paid at commencement and indemnified over two years.
Verdin says the network will feature cutting-edge technology, meaning connectivity, speed and service will be state of the art.
He believes Direct Life's backing by Skipton Building Society will benefit advisers who want to own their own business but be part of a big, established financial services group.
Verdin says Direct Life's move to set up a network is in response to requests from advisers already using its subsidiary LifeQuote.
He says: “It is an opportunity for us to build our business. We do not see compliance as a threat but as an opportunity. We are really enthusiastic and believe there is an opportunity in the market.”
Charcol senior technical manager Ray Boulger says: “For brokers who want to join a network, the more choice there is the better. But not all networks are going to get approved by the FSA. Brokers should play safe and sign up with a network which is likely to get authorised.”