Do you need FCA authorisation to become a mortgage advisor?

March 25, 2025 by Heidi

Mortgage Advisors

The Financial Conduct Authority (FCA) is the UK regulatory body overseeing financial firms. Its purpose is to ensure honesty, effectiveness and fairness in all the country’s financial markets. Involved in transactions involving sometimes hundreds of thousands of pounds, it is understood that mortgage brokers fall within the purview of the regulator.

As such, all mortgage advisors working professionally in the UK are regulated by the FCA and must have its authorisation to operate as part of a regulated firm or as an independent agent.

Authorisation is essential for mortgage advisor to practice as it ensures that the clients they serve will receive the correct quality of mortgage advice and be eligible for access to the FCA’s procedures for complaints and compensation if a problem should arise.

FCA objectives

The FCA has three main objectives. It protects consumers working to secure an appropriate level of protection for them. It also protects financial markets working to uphold and enhance the UK financial system’s honesty and integrity. Finally, it promotes effective competition in the best interests of UK consumers.

Why do mortgage advisors need FCA authorisation?

The FCA regulates and moderates the conduct of both businesses and individuals as well as the UK economy. The regulator insists the mortgage advisors complete a relevant qualification that proves they are competent to practice mortgage advice and have an in-depth understanding of their field. An example of such a qualification is the Certificate of Mortgage and Practice, often abbreviated simply to CeMAP.

As soon as a person planning to be an advisor successfully completes their CeMAP course, they will also need to ensure that they are abiding by the set guidelines for working professionally as a mortgage advisor, and this includes operating according to FCA rules.

Every professional role that relates to financial advice requires FCA approval and this includes mortgage advisors. To become FCA approved, mortgage advisors must meet specific criteria detailed in the Statements of Principle, the fit and proper test and the Code of Practice for Approved Persons, or APER for short.

When mortgage brokers are employed by a company, the firm they work for is required to apply on their behalf and must prove their capabilities. However, certified advisors can also apply for FCA authorisation an individual advisor. Upon receipt of approval, advisors will receive an official confirmation that they have been added to the register and allocated an individual FCA number.

CeMap Mortgage Advisor Training

To operate as a mortgage advisor, the FCA insists that individuals complete an accepted qualification like CeMAP. This industry standard qualification carries the approval of the FCA. A Level 3 qualification it’s equivalent to A Level standard, and along with the FCA, most employers require advisors to hold a CeMAP qualification.

While no official entry requirements exist to enrol in a CeMAP course, candidates should have sound English and Maths skills. As a result, at least a GCSE in both subjects is beneficial. CeMAP training is available from a wide range of private training companies in the UK.

How to become FCA authorised

Mortgage advisors must register with the FCA to supply mortgage advice as an ‘approved person’. Advisors must meet all the necessary requirements and adhere to the principles of the FCA’s “fit and proper” test. The test involves demonstrating that an advisor passes the regulator’s ‘honesty and integrity’ requirements. An applicant’s criminal history is an important component of this requirement.

It is worth noting that if a mortgage advisor has a criminal record or a conviction, they can still potentially obtain FCA authorisation or carry out their chosen role. The FCA states on its official website that it will not immediately reject approval if an individual possesses a past conviction or holds a criminal record. The regulator adds that it is willing to take each individual application under assessment using a case-by-case approach to form a decision.

During the process of applying for FCA authorisation, would-be brokers must ensure they are compliant with the Conduct Rules and inform the regulator of anything that might impact their suitability to serve as a mortgage advisor.

FCA enforcement

The FCA believes it is critical for both mortgage advice firms and individual advisors to be held accountable if they cause substantial harm to clients or financial markets. As such, it uses an extensive selection of enforcement powers including civil, regulatory and criminal to safeguard consumers and act against individual advisors and mortgage advice firms that don’t meet its standards. The FCA’s powers include issuing financial penalties, banning advisors from performing regulated activities, prosecution and public censure.