Network Support for Directly Authorised Brokers: Direct authorisation gives a mortgage firm control over its permissions, systems, compliance framework and lender relationships.
However, independence does not mean every service must be built internally.
Directly authorised brokers may still need wider lender access, specialist case support or additional capacity. Network services can provide that infrastructure without automatically changing the firm’s regulatory status.
At a Glance
Directly authorised mortgage brokers can use selected network services while retaining control of their firm.
Depending on the case and service agreement, support may include:
- Specialist mortgage packaging
- Access to selected lender distribution routes
- Case placement support
- Client referral options
- Additional capacity during busy periods
- A future route into network membership
The correct route depends on the broker’s FCA permissions, client agreement and chosen service.
What Does Network Access Mean for a DA Broker?
Mortgage network access does not always mean becoming an Appointed Representative.
A directly authorised firm may use individual services offered by a network, distributor or packager. The firm remains responsible for ensuring that each arrangement fits its permissions and compliance framework.
This can help when a suitable case falls outside the broker’s lender access, available time or internal expertise.
The purpose is practical. A firm should retain the responsibilities it is equipped to manage and obtain support where specialist infrastructure may improve the process.
When Can Network Support Be Useful?
A DA broker may consider external support when:
- A lender distributes products through selected networks or distributors
- A complex case requires specialist packaging
- The firm does not hold the required permission for the advice needed
- The adviser does not wish to advise in a particular product area
- Internal administration or placement capacity is limited
- A client needs support beyond the firm’s existing proposition
The broker should decide which route applies before the client is passed to another party or an application is submitted.
Three Routes Available to Directly Authorised Brokers
1. Mortgage Packaging Support
A mortgage packager can help assess, prepare and present an application to a suitable lender.
This can be valuable for complex buy-to-let, commercial, bridging, second charge or specialist residential cases. Packaging may include an initial case review, document checks and communication with the lender.
The adviser should confirm who is responsible for the advice, application and ongoing client communication.
Read more about mortgage packaging and adviser services.
2. Client Referral
Referral may be appropriate when the DA firm lacks the required permission, expertise or capacity.
Under a referral arrangement, another authorised adviser may take responsibility for the advice. The original broker should explain the process clearly and obtain any necessary client consent.
The referral terms should confirm:
- Who will advise the client
- Who will hold the client information
- How the client will be contacted
- Whether a referral payment may be made
- What happens after the case completes
A clear handover protects the client experience and reduces uncertainty about each firm’s role.
3. Full Network Membership
Some directly authorised firms eventually decide that wider network membership better suits their operating model.
This is a separate decision from using an individual packaging or referral service. It can involve changes to regulatory responsibility, systems, oversight and lender access.
Brokers considering both structures can review the practical differences between being directly authorised and joining a network.
Does the Broker Keep Control of the Client?
Client control depends on the service being used.
With packaging support, the DA adviser may remain responsible for the advice and primary client relationship. The packager supports the placement and administration process.
With a referral, responsibility for the advice may move to the receiving adviser. The original broker should not suggest that they remain responsible for advice they are not authorised or contracted to provide.
Written terms should therefore explain:
- Client ownership
- Data protection responsibilities
- Advice responsibility
- Communication arrangements
- Fees and commission
- Complaint handling
Clarity at the beginning prevents confusion later.
Can Network Access Improve Lender Reach?
Some lenders use restricted distribution arrangements. Their products may be available through selected networks, mortgage clubs, distributors or packaging firms.
A wider distribution route does not remove the need for suitability. It may simply allow a DA broker to explore a case beyond their existing direct lender relationships.
The adviser must still consider the client’s circumstances, the service being used and the responsibilities agreed between each firm.
How Connect Experts Supports Adviser Visibility
Connect Network also has a relationship with Connect Experts, a mortgage adviser directory for network advisers and associated authorised firms.
The directory helps consumers search by location, mortgage type, language, gender, company or adviser name. Advice is provided by the adviser or firm selected by the customer, not by the directory itself.
Eligible advisers can learn more through the Connect Experts mortgage adviser directory.
Directory visibility is distinct from packaging or referral support. However, it demonstrates how network infrastructure can extend beyond case placement into adviser visibility and consumer access.
Choosing the Right Level of Support
The strongest business structure is not always the one with the greatest number of internal services.
It is the structure that clearly defines responsibility, protects the client and supports consistent advice.
Before using a network service, a DA firm should consider:
- Its existing FCA permissions
- Who will provide regulated advice
- Whether the client understands the arrangement
- The commercial terms
- Data protection responsibilities
- Available lender routes
- Internal capacity
- Long-term business plans
A single specialist case may require packaging support. A permission gap may require referral. A broader operational review may lead to a conversation about full membership.
Speak to Connect About DA Broker Support
Connect offers adviser services for directly authorised brokers requiring packaging, placement or referral support.
Firms considering a wider change can also explore the support available when they join Connect Network.
The first step should be to identify the service required, who will advise the client and which firm will hold responsibility at each stage.
FAQs About Network Support for DA Brokers
Can a directly authorised broker use a mortgage network?
A DA broker may use selected services supplied by a network, distributor or packager. The arrangement must fit the firm’s permissions, compliance responsibilities and service agreement.
Does using a packager make a DA broker an Appointed Representative?
No. Using a packaging service does not by itself change the firm’s regulatory status.
Can a DA broker refer a client to another adviser?
Yes. Referral may be appropriate where the firm lacks the required permission, knowledge or capacity. The client should understand who will provide the advice.
Who owns the client after a referral?
This depends on the written referral agreement. Client contact, data use, advice responsibility and future servicing should be agreed before the referral proceeds.
Can a directly authorised firm later join Connect Network?
Yes. A DA firm can separately explore whether Appointed Representative status and wider network membership suit its future operating plans.