The FSA has warned mortgage networks over the lack of app-ropriate controls in place to ensure that appointed representatives are conducting business properly.Speaking at Mortgage Expo, FSA head of mortgages and credit unions Michael Lord said the regulator had uncovered evidence of inappropriate behaviour concerning controls and will be making it a priority area for 2006/07. Lord said: “We have found mortgage networks who have not put controls in place to make sure ARs are being controlled properly.” The Association of Mortgage Intermediaries said the number of mortgage networks will halve in 12-18 months. Director general Chris Cummings said the 25 networks covering the mortgage market will reduce to 12-16. However, Cummings told brokers they could be proud of being responsible for producing the lowest volume of complaints out of any financial services sector. He said mortgage brokers would find the transition to principle-based regulation easier than the rest of the industry as they have the principle of treating customers fairly more firmly entrenched in their businesses. Cummings used the launch of lead-generation firm Leadbay Loans to call for a code of standards to be introduced for lead-generation firms to rid the industry of cowboy firms.