TMA Mortgage Club has claimed that 47% of Directly Authorised (DA) advisers are planning on responding to the FSCS consultation, which closes in one week.
The sample survey of 62 of TMA’s premier members also shows that 30% of DAs are still undecided as to whether they will respond whilst 23% have said that they aren’t planning on doing so, even though 93% agree that the current set up of the scheme is unfair.
TMA believes that the ‘complexity’ of the FSCS levy is deterring some brokers from responding to the consultation paper. The details of the proposed changes to the levy are 103 pages long and the FCA have set 31 questions for brokers to answer as part of the consultation response form.
However, when responding to the consultation paper the intermediary is not obliged to answer all 31 questions, and can choose to only answer the questions they feel strongly about.
Brokers have until the 31st March to respond and can do so by visiting the FCA website and answering Q14: What are your views on the different funding classes we have set out here? Do you have any alternative proposals?
DAs can respond to the survey here: https://www.fca.org.uk/cp16-42-response-form
The full consultation paper can be read here: https://www.fca.org.uk/publication/consultation/cp16-42.pdf
David Copland, director of TMA Mortgage club, said: “Whilst we’re pleased that a significant amount our Directly Authorised advisers already have, or are planning on responding to the FCA consultation, there are still some who remain deterred by the scheme’s complexity.
“The FCA should therefore make the outlines of its new proposals clearer for mortgage and protection brokers. With only a week to go until the consultation ends, we will continue to fight against this levy in the interests of our DAs.”
