AMI criticises FCA’s fees and levies consultation

The Association of Mortgage Intermediaries (AMI) has expressed “deep concern” at the FCA’s latest fees and levies consultation.

The trade body challenged the FCA’s decision to only allow a five-week consultation period and highlighted that for the first time, the regulator has failed to publish its business plan to underpin the budget.

Furthermore, the AMI was critical that the proposals introduce a new levy on networks which was not consulted on in the FCA’s November policy proposals, and warned this will create a backdated levy on some firms, which it suggested “breaches all principles of fairness”.

The introduction of a new fee category (A22) is a change to the process of how the FCA introduces new fee policies, and the AMI said it should have been included in the November policy paper with a full cost benefit analysis.

AMI chief executive, Robert Sinclair, said the trade association echoes the issues raised by our PIMFA, which shares concerns on the “sudden and unexplained additional fees on networks”.

“This £10m additional charge is a disgrace,” Sinclair said. “The industry deserves a better explanation on why from this new FCA management team.

“In proposing these changes, the regulator must consider whether it would be comfortable with such a significant change to the mortgage intermediary sector structure and its ability to manage and control such a migration.

“The cumulative effect of the changes in FCA periodic fees and application fees; the new levy on principal firms for ARs and IARs; increases to FOS levies and case fees; the large increase in FSCS levies and the substantial increases of PII premiums exclusions and excesses; is having a profound effect on firms’ profitability and potentially their viability.

“These cumulative proposals display a lack of clarity, fairness and is undoubtedly misleading.”

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