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AMI move for lenders to subsidise advisers when regulation starts

The Association of Mortgage Intermediaries plans to ask lenders to help subsidise mortgage intermediaries&#39 payments to the Financial Services Compensation Scheme when they are regulated.

AMI director Chris Cummings says he is keen to establish a voluntary arrangement which would see lenders subsidising mortgage intermediaries&#39 payment of the levy.

The levy paid by IFAs is currently subsidised by product providers through Pass although this subsidy is due to come to a close at the end of this year, having only been put in place for a three year transitional period.

But Cummings says mortgage intermediaries are in a different position to IFAs as they have not been tarred with a misselling scandal and will therefore be placed in a fee bracket where the financial burden is much lighter than that in place for IFAs.

Cummings says: “If we could achieve the current position of the IFA commun-ity in having provider subsidy this would be a good thing. I am very aware of the cost of regulation coming in and it would be ideal if the industry could come up with its own solution to growing costs.”

Unum Provident corporate services director Joanne Hindle says: “It would be interesting to see if a group of providers could find out if there is a need for support for those intermediaries being regulated from October and January.”

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