The Association of Mortgage Intermediaries (AMI) believes that mortgage brokers will receive a “fairer outcome” from the FSCS on the fees levied from 2019.
In a statement, the trade body said it “..is delighted that the FCA has listened and agreed with our arguments for a fairer arrangement for mortgage brokers. From April 2019 mortgage brokers will no longer have to pay for the mis-selling of personal pensions and investment business. Instead pure protection will form part of the general insurance distribution class. In addition, all intermediary classes will now benefit from a 25% contribution to costs.”
Robert Sinclair (pictured), chief executive of AMI, added: “The senior management of the FCA listened to our logical arguments and agreed that these changes were sensible. We believe that these amendments to the funding of the FSCS should deliver a more balanced industry in the future.
“In resisting strong lobbying from the provider community, the FCA has stood up in support of smaller advice firms.”