Following an objection from the Association of Mortgage Intermediaries the Financial Conduct Authority has agreed to remove the consumer buy-to-let (CBTL) periodic fee and CBTL FOS levy for already authorised firms.
In responding to this year’s FCA fees consultation, AMI made a series of objections to the proposals. These included the overall rise in costs, the increases in the fees for mortgage and protection firms and the addition of the CBTL fees.
The FCA is however intending to increase its periodic fees for mortgage intermediaries as planned. Despite AMI highlighting the number of FCA staff that should be working on mortgages based on the amount the industry pays, the FCA has again provided no clarification of its costs. It has simply attributed the increase to implementing the Mortgage Credit Directive.
Robert Sinclair (pictured), chief executive of AMI, said: “We are grateful that the FCA has acknowledged some of the issues AMI raised around the minimum fee. The FCA has gone some way to reducing the burden on small mortgage brokers by removing the additional CBTL fees.
“However the continued inclusion of the consumer credit fee is not insignificant. AMI fundamentally believes that consumer credit activities should not require mortgage intermediaries to hold a separate permission as they are already accountable under both the broader FCA principles and specific conduct rules.
“Although the majority of intermediaries will pay the minimum fee, there will be a significant bill for the largest firms who will bear all of the £1.2m increase. We are disappointed that the FCA has failed to give a full justification for the amount being levied on the sector.”