The Financial Conduct Authority (FCA) has published its policy statement and ‘made rules’ for regulated fees and levies 2020/21.
The Association of Mortgage Intermediaries (AMI) says that while the FCA fees remain broadly level for mortgage intermediaries, firms whose turnover has remained consistent will see a reduction in total cost of regulated fees year on year, due, in the main, to a reduction in the levies paid for by mortgage intermediary firms towards the Financial Services Compensation Scheme.
AMI says it is delighted that its lobbying during the review of the FSCS in 2016-18 “is showing real benefit to intermediary firms at an important time”.
Robert Sinclair, chief executive of AMI, said: “AMI welcomes the reduction in FSCS fee costs for firms in the midst of this pandemic and at a time when capital resources are more challenging for firms.
“We regret that firms with invoices over £10k will have to pay within 30 days, but are supportive that smaller firms will have 90 days to pay.
“Whilst delighted that firms will not see a real increase in their total fees and levies costs this year, we remain acutely aware of the challenges faced by firms and the interrelation between capital adequacy requirements, PII, FOS and the FSCS costs.
“I was heartened to hear Charles Randell’s (FCA chair) statement that they needed to redesign the system to ensure that polluting firms in the financial sector pay, not those who have behaved well.
“AMI will continue to work to hold the FCA to account and ensure that intermediary fees are proportionate to the risks posed.”