This comes after AMI was concerned following a speech made by FSA head of mortgage and credit unions Jonathan Fischel in May where he stated that where a whole of market adviser was facing difficulty in accessing a representative panel of lender or was aware of more suitable products being available in the market, they should clarify to their client that there are certain deals only available direct that the client may want to investigate.
AMI says it wanted to ensure that there were no fresh regulatory burdens being placed on firms.
It says: “This could have been an issue not only for the mortgage market but also one affecting all retail financial services (would an IFA have to tell an investment deal that better terms may be available by going direct?). We were also concerned that tied mortgage advisers seemed to be excluded from these new requirements – why did they not have to say that better terms may be available by going to an intermediary?”
AMI says the FSA has confirmed to it that the statement was confined to whole of market mortgage advisers experiencing the specific details of reduced access and dual pricing in a “temporarily distorted market.”
It says: “the dual pricing issue may well be starting to fade – and regulation based on a moment-in-time does not make for good regulation, but the FSA have assured us that this is not the case and no new regulations are being introduced. “
Money Marketing previously revealed that AMI has begun a “Stakes in the ground” project to map out and record the events of the last few weeks.
In its member note, the trade body says it will discuss these records with the regulator to ensure it also agrees with them and then it will publish them as a record of note.
“AMI will maintain these records – which members can call upon in case of complaints in the years ahead. Naturally, firms will need to keep their own client specific records particularly with regard to advice relating to the unusual market conditions under which they are operating. In this way, we will ensure the market has an added layer of protection.”