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

ASA upholds complaint over ‘leading body’ claim in CPD accreditation ads

The Advertising Standards Authority (ASA) has upheld a complaint against The Professional Development Consortium...

Additional property purchases drive stamp duty receipts in more than half of councils

Landlords and second-home buyers now account for the majority of stamp duty receipts in...

Landlords urged to review rent guarantee cover after Renters’ Rights Act changes

Buy-to-let landlords should consider rent guarantee insurance after the Renters’ Rights Act came into...

Rural house prices outpace urban markets

Rural housing markets in England and Wales are recording stronger annual price growth than...

Connells Survey & Valuation and StrideUp launch platform with Cotality

Connells Survey & Valuation and StrideUp have become the first firms to launch Cotality’s new Integrated LenderHub platform...

Latest publication

Other news

Beyond the walk: Mortgage leaders talk mental health – part 8

The Mortgage Industry Mental Health Charter (MIMHC) is hosting its third annual 144-mile Walk...

The human adviser in an AI mortgage market

NatWest’s decision to place home-buying guidance inside ChatGPT is a story with large implications. It...

ASA upholds complaint over ‘leading body’ claim in CPD accreditation ads

The Advertising Standards Authority (ASA) has upheld a complaint against The Professional Development Consortium...