AMI director general Chris Cummings says it is very concerned about the content of FSA head of mortgage and credit unions Jonathan Fischel’s speech.
He says: “In the speech he implied that the FSA were introducing new disclosure requirements solely for independent mortgage intermediaries in the midst of what can only be described as turbulent market conditions. It was left unsaid how tied salespeople would have to respond to Mr Fischel’s speech.”
“To suggest that a direct deal could be more competitive fails to recognise the service provided by an intermediary. This leads to questions such as, should an IFA tell an investment client that they may get a better deal by going direct? Should a tied adviser refer to the fact that their customer may get a better or more suitable product from an independent adviser?”
Cummings says AMI strongly refutes this position and fears the potential repercussions across the financial services market.
He criticised the FSA for choosing to announce regulatory changes at a trade show without first considering the wider ramifications of their announcement.
“The mortgage market has rules relating to mandatory disclosure of status that are clear and should be sufficient on their own. If not the FSA should review them. We strongly urge the FSA to reconsider its position.”