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

Conveyancer numbers fall 15% as firms face mounting workload pressures

The conveyancing workforce in England and Wales has contracted by 15% in little more...

Lendlord adds free rent increase notice tool for landlords

Lendlord has introduced a free tool designed to help landlords prepare the Form 4A...

LendInvest and MDA flag development finance risks from Building Safety Levy

LendInvest and MDA Consulting have published guidance for property lenders and developers ahead of...

Family BS launches £12.5m HNW interest roll-up mortgage

Family Building Society has launched an interest roll-up mortgage allowing high net worth borrowers...

Property transactions edge lower as mortgage costs weigh on market

UK residential property transactions fell in August, with HM Revenue & Customs recording 95,220...

Latest publication

Other news

Conveyancer numbers fall 15% as firms face mounting workload pressures

The conveyancing workforce in England and Wales has contracted by 15% in little more...

Lendlord adds free rent increase notice tool for landlords

Lendlord has introduced a free tool designed to help landlords prepare the Form 4A...

LendInvest and MDA flag development finance risks from Building Safety Levy

LendInvest and MDA Consulting have published guidance for property lenders and developers ahead of...