Should I Go AR or DA? | A Clear Guide for UK Mortgage Advisers: Deciding between AR (Appointed Representative) and DA (Directly Authorised) status is one of the most important choices you’ll make as a mortgage professional. This guide will help you understand each route, its benefits and challenges, and how to pick the right path for your business.
Understanding the Routes: AR vs DA
When building your mortgage business in the UK, the two main regulatory models are:
-
AR (Appointed Representative) – you operate under a network’s permissions and compliance framework.
-
DA (Directly Authorised) – you apply for your own authorisation with the Financial Conduct Authority (FCA) and manage compliance yourself.
Each route offers distinct advantages and responsibilities. The best choice depends on your goals, experience, resources and appetite for regulatory risk.
Key Factors to Consider Before Choosing
Before you commit to AR or DA status, ask yourself these questions:
-
What level of support do I require? If you prefer strong operational and compliance support, an AR model may suit. If you want total independence, DA might be right.
-
What is my growth ambition? If you plan to scale quickly, develop your own brand or build a team, DA gives you more freedom.
-
Do I have compliance expertise? DA requires you to lead on governance, training, audits and FCA reporting. Many advisers begin as ARs to gain experience.
-
What are my cost, fee and technology requirements? Evaluate the fees, platform costs, indemnity insurance and lender panel access associated with each route.
Pros and Cons of Direct Authorisation (DA) vs Appointed Representative (AR)
| Model | Advantages | Challenges |
|---|---|---|
| Direct Authorisation (DA) | • Full control over your brand, business model, fees, and marketing. • Retain 100% of your procuration fees, subject to your own structure. • Freedom to choose your own technology, lender panel, and operations without network restrictions. |
• Full responsibility for compliance, risk, regulation, and supervision. • The FCA application process can take three to six months and involves higher start-up costs. • You must oversee staff training, audits, and governance independently. |
| Appointed Representative (AR) | • Faster route to market with regulatory permissions provided by the network. • Access to compliance support, training, mentoring, and marketing resources through the network. • Lower initial costs and reduced administrative workload. |
• Limited business freedom and reduced autonomy over branding and growth decisions. • Fee sharing or network deductions may apply. • Business activities must follow the network’s compliance rules and lender panel arrangements. |
Which Route Should I Choose?
There is no one-size-fits-all answer. However:
-
Choose AR if you are newly qualified, want structured support or want to focus on advice rather than compliance operations.
-
Choose DA if you already have experience, a client base, a clear growth plan and are ready to manage regulatory processes.
-
Many advisers follow a hybrid path: start as AR to build momentum, then transition to DA once business fundamentals are in place.
How Connect Network Supports Both Routes
At Connect Network, we help advisers succeed whichever path they take.
-
For ARs: we offer a flat-fee model, full compliance support, and mentor-led onboarding.
-
For those moving to DA, we provide transition support, regulatory guidance and access to a specialist lender panel.
Our goal is to let you choose the structure that best fits your business, while providing you with the tools to grow.
Read more on the AR advantage in our previous article: Elevate Your Career | Discover The Benefits of Joining Our Network
Next Steps – What You Should Do Now
-
Download our “AR vs DA” checklist to compare costs, timescales and responsibilities.
-
Book a one-to-one call with our adviser growth team to explore which model suits you.
-
Review your business plan, including revenue targets, compliance budget, and growth timeline, and match it to a suitable route.
-
If you’re ready, join the Connect Network today and take the next step in building your mortgage business.
Thank you for reading our publication “Should I Go AR or DA? | Mortgage Adviser Guide | Connect Network” Stay “Connect“-ed for more updates soon!