Broker networks opt for single compliance

The Broker Network's 125 members will apply for individual registration with the FSA.

But smaller broker groups indicated that they preferred a single central compliance officer.

Network managing director Grant Ellis said the network would attract more onerous monitoring if it became registered and made its members appointed representatives.

"We'll supply the necessary infrastructure to ensure network members are themselves individually compliant with the FSA regulations," he said.

Eastern Alliance chief executive Grant Taylor said his group, comprising seven brokers, had not yet decided which method it would use.

"We may appoint someone new to oversee compliance or continue down the road of individual registration," he said.

"But we'd want to see what responsibilities would be put on the compliance office."

The seven broker members of Westinsure, which is more of a group than a network, will appoint a central compliance officer.

Westinsure chief executive Bob Parkins said: "A big part of that is having a common IT partner, which we're close to having."