How to check a mortgage broker on the FCA Register

When FCA authorisation applies

Whether a broker needs FCA authorisation depends on the activity. Arranging a regulated mortgage contract generally requires it. Whether a particular loan is regulated depends on the borrower, the security and how the property will be used, for example a loan to an individual secured on a home that they or a close family member will live in.

Many bridging loans to limited companies are not regulated mortgage contracts, so FCA permission for that deal may not be required. Confirm the position on each case with your compliance function rather than assuming either way.

Checking the register is still worthwhile whichever way the loan is classed: it helps confirm who you are dealing with, shows whether the firm is FCA-regulated for any of its business and can help spot clone firms using a genuine firm's details. It does not on its own show that the broker is permitted to carry out the specific activity on this deal.

What to look for on the firm's entry

• Status is Authorised, or the firm is a current appointed representative, not Cancelled or No longer authorised.
• The Firm Reference Number (FRN) matches the paperwork the broker gave you.
• If the loan may be regulated, the permissions listed should cover arranging regulated mortgage contracts (the register describes these as 'Arranging (bringing about)' and 'Making arrangements with a view to' regulated mortgage contracts). Check the wording on the register itself, as it can change.
• Trading names, addresses, phone numbers and website match how the broker contacted you.

Appointed representatives

An appointed representative generally acts under the permissions of its principal firm, and the principal is responsible for it. Check the principal firm's status and permissions, and that the appointed representative relationship is current. The permissions that apply depend on what the principal has agreed the appointed representative may do.

If the firm has recently changed principal, note it and confirm the new arrangement is in place.

Check the people too

Search the FCA Directory for the individual adviser or director you are dealing with, and confirm they are linked to the firm.

Warning signs

• The firm appears on the FCA Warning List of unauthorised and clone firms.
• Contact details differ from the register entry, for example a different phone number or email domain.
• The firm name closely copies an authorised firm.

Example

A broker sends a case quoting a genuine FRN. The register entry is real, but the phone number and email domain on the broker's emails don't match it. That pattern is typical of a clone firm, and the case should stop until the firm is contacted through the details on the register.

Keeping evidence

Record the date of the check and keep a screenshot of the register entry on the credit file. Vettsafe captures these screenshots and adds them to a PDF report.