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AMI concern over FCA fee proposals

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The Association of Mortgage Intermediaries has warned large mortgage brokerages will see their regulatory costs and levies rise by 50 per cent in 2013/14 after the Financial Conduct Authority published its regulatory fees and levies consultation.

The FCA figures show mortgage brokers and home finance providers will see an 11.7 per cent rise in fees from £14m to £15.6m.

While the smallest firm will continue to pay the minimum fee of £1,000, larger firms with a £2m mortgage or £1m insurance income will see their fees rise from £22,849 in 2012/13 to £34,029 next year.

Ami chief executive Robert Sinclair says: “The commitment to maintain minimum fees at £1,000 for all directly authorised smaller firms is welcome news. Indeed with the fall in the FSCS levies, the bill for the smallest firms will be much lower than last year. However this should not mask significant increases in the direct costs of the regulator and massive increases for larger firms.

“The only saving grace is that the invoices that will land in July will be smaller than last year. This is because the levies for the Compensation Scheme are much less than last year. Whilst some might feel that the new FCA has been saved by the FSCS, I would counsel caution as the continual upward trend in the cost of our regulators must be stopped and a cap put on their funding. They must learn to prioritise and allocate resources accordingly, as they would require the firms they monitor to do.”

Sinclair says AMI will respond “vigorously” to the consultation.

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