AMI: 8.5pc FCA budget increase is wrong
Speaking at the Association of Mortgage Intermediaries’ annual dinner last week Sinclair said the body will challenge fee hikes in the months and years ahead.
Sinclair said: “An 8.5% budget increase across the board with new costs for consumer buy-to-let is just plain wrong.
“It is out of kilter with most other regulators. AMI will continue to challenge for flat or reducing budgets not just this year but in the years to come.”
Not only will intermediaries have to pay more to the FCA, Sinclair said firms are already having to invest significantly on risk and compliance systems to make sure they meet the necessary requirements set out by the FCA.
Sinclair added: “These costs need to be shared, and I implore those in command to consider those very intelligent lenders that pay increased procuration fees for retention, as this will improve our market as a whole.
“The recognition by many that the work of the broker has value as well as an upward drift in procuration fees will allow more sustainable businesses. This also recognises the increased workload since MMR.”
AMI has a growing relationship with fellow trade bodies the Council of Mortgage Lenders, the Intermediary Mortgage Lenders Association, the Building Societies Association and the Finance & Leasing Association.
Sinclair said: “There are proposals to bring our lender partner trade bodies closer under one roof. AMI is grateful to be involved in the debate in that process.
“We will be asking the project to tread carefully and not lose what is special about what is special about the CML, IMLA and FLA.
“Firms must still make an honest profit. We need industry consensus on what might be a fairer approach. We can’t rely on the regulator to deliver that for us.”