The Association of Mortgage Intermediaries has spoken out in support of the FSA’s plans to ban non-advised sales after lender trade bodies hit out at the proposal.
Today was the final day for consultation on the FSA’s final mortgage market review paper, which was published in December.
The FSA proposed most non-advised sales should be banned where there is a “spoken or other interactive dialogue” between a customer and a firm, meaning face-to-face, telephone, social media and online propositions where there are chat facilities would be captured by the proposal.
High net-worth clients are exempt from the proposal. Also, all customers can proceed on an execution-only basis if they reject the original advice.
Earlier today, the Council of Mortgage Lenders called for lenders’ call centre staff to be exempt from offering advice and warned the proposal would increase costs, reduce the amount lenders can lend and would stop new lenders from entering the market.
The Building Societies Association also criticised the proposal today, saying there are instances where advice is both “inappropriate and impractical” and the proposal does not give customers a choice about how they want to manage their finances.
Ami director Robert Sinclair (pictured) says: “In supporting the principles and aims of MMR, we have been vigorous in arguing that it should not stifle innovation, choice and the ability to get on the housing ladder.
“We are therefore fully supportive of the proposals to make advice the default position for all mortgage transactions, with an opt out for those confident they can execute it themselves.”
In its submission, Ami also urged the FCA should ensure the MMR is implemented carefully to avoid lenders overreacting when changing their criteria and urged the FSA to reconsider the delay indefinite of individual registration.