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

Just Wealth posts 63% rise in assets under management as referrals grow

Just Wealth, the financial advice arm of Just Mortgages, said assets under management rose...

Growing demand for faster, more supportive broker service among first-time buyers

First-time buyers are leaning heavily on brokers for speed, reassurance and help navigating affordability...

Middle East conflict clouds mortgage rate outlook and Autumn Budget decisions

Energy market volatility has driven borrowing costs higher in recent weeks, forcing mortgage lenders...

Clydesdale Bank to raise selected residential and buy-to-let rates

Clydesdale Bank will increase a range of residential and buy-to-let fixed rates from Friday...

Virgin Money to raise selected mortgage and buy-to-let rates

Virgin Money is increasing a range of residential, remortgage, buy-to-let and product transfer rates...

Latest publication

Other news

Q&A: Anne-Marie Lister, Rebecca Hurdiss, Michelle Boylan & Manasi Nayyar, GB Bank

Mortgage Soup fires the questions at Anne-Marie Lister - chief operations & people officer...

Just Wealth posts 63% rise in assets under management as referrals grow

Just Wealth, the financial advice arm of Just Mortgages, said assets under management rose...

Growing demand for faster, more supportive broker service among first-time buyers

First-time buyers are leaning heavily on brokers for speed, reassurance and help navigating affordability...