AMI responds to FCA consultation on funding review of FSCS
The Association of Mortgage Intermediaries is pleased that the FCA is now consulting on moving pure protection intermediation from the life and pensions funding class to the general insurance distribution class.
AMI has also declared its strong support of the inclusion of provider contributions to the intermediary classes which disappeared from the FSCS structure when the FSA split in 2013.
The last two years has seen AMI argue for reform, with a recommendation of restructuring the FSCS classes to ensure greater affinity.
The association believe it “grossly unfair” that mortgage firms as the primary writers of life insurance have been reportedly paying a disproportionate amount of investment advisers’ invoices despite no connection between the two business lines.
Robert Sinclair (pictured), chief executive of AMI, said: “We have been tirelessly lobbying several issues with the FSCS structure and we are pleased that the significant work we have carried out with the FCA over the last year is materialising.
“The fact that the FCA has decided to re-consult with industry rather than proceeding with one of the proposals set out in the last paper is encouraging.
“They have not only listened to our concerns but are openly engaging with industry to ensure that they implement the fairest solution.
“We are really happy that the work done since the first consultation has paid off with a further consultation which reflects our long-term lobbying position.”
AMI will be responding to the consultation before it closes on 30 January.