AMI disappointed and concerned by FCA fee stance

Published on

The Association of Mortgage Intermediaries (AMI) has expressed its frustration with the FCA over the regulator’s consultation on fees.

The trade body said that the five weeks allotted represented the shortest consolation on fees “in memory”, and that, for the first time, there was not a published business plan to underpin the budget.

AMI also slammed the introduction of a new levy on networks which was not consulted on in the November policy proposals, and criticised the regulator over significant increases to the minimum fee on consumer credit where its members have no income, “despite prior assurances”.

Finally, AMI noted that the FCA as significantly increasing their budgets by restating the categories of charge – increasing application fees with no commensurate reduction in on-going costs.

Robert Sinclair, chief executive of AMI, said: “It is disappointing that having acknowledged the huge spike in FSCS costs, the FCA is also intent on increasing the cost burden on firms at a time of falling revenues.  In apologising for having failed a number of consumers, it is again the good firms who remain who are picking up the bill.

“I am particularly concerned that having found issues in controls over Appointed Representatives (ARs) in the Investments and General Insurance space, a broad brush approach has been applied without consultation.

“To add a cost of £250 for each AR to a mortgage network without evidence of harm seems unfair. AMI will be challenging this rushed change to the rules and the cost to firms robustly.

“For what is another significant addition of new fee classes and costs, a five week response time leaves us very limited time to consult with our membership.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Canal trek triumph as Berry and Morely win gold

Jason Berry and Charlie Morely finished their epic 141-mile trek up the Grand Union...

East Ayrshire named most affordable area for first-time buyers

East Ayrshire has been named the most affordable location in the UK for first-time...

Landlords buying from landlords as BTL purchases hit 10-year high

Landlord purchases have climbed to their highest level in a decade although the latest...

Beyond the walk: Mortgage leaders talk mental health – part 15

The Mortgage Industry Mental Health Charter's (MIMHC) third annual 144-mile Walk & Talk challenge...

Affordability widens north-south mortgage divide

A growing affordability gap is fuelling an increasingly pronounced north-south divide in the housing...

Latest publication

Other news

Canal trek triumph as Berry and Morely win gold

Jason Berry and Charlie Morely finished their epic 141-mile trek up the Grand Union...

Economic abuse: The warning signs every adviser should recognise

Taking out a joint mortgage is one of the most common ways for people...

East Ayrshire named most affordable area for first-time buyers

East Ayrshire has been named the most affordable location in the UK for first-time...