The Association of Mortgage Intermediaries has criticised the decision to move the responsibilities for the Consumer Credit Act from the OFT to the embryonic FCA present the industry.

Robert Sinclair (pictured), chief executive of AMI, said it will lead to a series of challenges and represents a missed opportunity.

“The proposal to increase the cost of regulation from £10 million to £25 million adds another layer of expense to business that is already struggling like the rest of the economy. When combined with the higher hurdles that the FCA will impose on firms to reach full authorisation, we will undoubtedly have fewer firms paying these higher costs.

“With the truncated eight-week consultation periods on both the Treasury and FSA papers with Easter in the middle, this will make it difficult for trade bodies to fully consider, consult and feedback on all the issues. As these proposals have been some time in the making, this is disappointing.

“In setting out the framework now, we will not see the new conduct rules until late in 2013, with a plan to implement on 1 April 2014. This does not leave enough time for firms to absorb the proposals, recognise the risks and react appropriately. Perhaps the choice of All Fools Day is appropriate. The proposed six-month dual regime is unlikely to be long enough for legal certainty or practical implementation.

“An opportunity missed is the silence on removing the need for mortgage broker to also hold the consumer credit permission. As many hold this only to cover simple reviewing or advising on settling unsecured credit, surely this could be rolled into MCOB and avoid many firms who are already authorised by the FSA needing to go through this interim regime process.”