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

Older renters face rising retirement costs, warns Suffolk Building Society

Suffolk Building Society has highlighted the mounting financial pressure on older renters, warning that...

MorganAsh backs new CII guidance on supporting vulnerable customers

MorganAsh has welcomed the publication of new customer vulnerability guidance from the Chartered Insurance...

Mera backs £18m refurbishment of ultra-prime London penthouse

Mera Investment Management has completed an £18 million residential refurbishment facility for a one-of-a-kind...

Roma Finance partnership to guide contractors into property development

Roma Finance has become the official lending partner for Rise Up Development’s education programme,...

First2Protect unveils Acturis-built broker portal to streamline insurance referrals

First2Protect has launched a new broker portal designed to give mortgage advisers a faster...

Latest publication

Other news

Gareth Lewis on leading MT Finance through a changing landscape

Gareth Lewis has spent the past seven years at MT Finance, guiding the specialist...

Older renters face rising retirement costs, warns Suffolk Building Society

Suffolk Building Society has highlighted the mounting financial pressure on older renters, warning that...

MorganAsh backs new CII guidance on supporting vulnerable customers

MorganAsh has welcomed the publication of new customer vulnerability guidance from the Chartered Insurance...