The Association of Mortgage Intermediaries (AMI) has claimed that lobbying work by trade bodies has resulted in a more balanced series of FSA mortgage rules than previously envisaged.

“In confirming their commitment to codifying dialogue around particular products as advice, the embryonic FCA has nailed its colours to the mast,” said Robert Sinclair (pictured), AMI chief executive.

“We support the introduction of the need to act in the customer’s best interest and the requirement to assess needs and circumstances. AMI members fundamentally believe in and support this approach.

“In the granular analysis on what will occur when consumers want to review their existing arrangements, the new rules and guidance do not go as far as AMI was hoping. Lenders will still be able to undertake many transactions in this area on an execution only basis, including consolidating fees into the loan. As this is an area that has been recently causing concern amongst the consumer lobby, I remain to be convinced that MMR does enough to protect consumers.

“As many lenders face up to the challenges of advice and implementing the requirements around affordability, I expect some smaller lenders might look for intermediary support and with the wider changes to the rules, AMI anticipates that more business will be intermediated rather than be done direct in future. The FSA has done much to listen in the areas of affordability, stress testing and lending into retirement and delivered a much more positive and balanced package.”

Sinclair added: “The on-going deferral of individual authorisation remains our key concern. Particularly we are keen to see created a comprehensive industry register so that consumers, lenders and broker firms can be assured they are dealing with responsible and qualified advisers. We need to chase the remaining rogues from our industry and limit any new arrivals. We stand ready to work with CML, BSA, IMLA and lenders to use broker delivery channels to make this an effective and seamless change for consumers.”