The Association of Mortgage Intermediaries (AMI) has welcomed the 2023/24 fees and levies consultation announced by the Financial Conduct Authority (FCA).

The regulator’s proposal is to charge larger firms in the mortgage intermediary sector 10.4% more in both the mortgage and protection classes.

However, as the FCA believes that firms have had a good 2022, the actual fees rates are flat for mortgages and only 7% higher for protection.

Due to lower Financial Services Compensation Scheme (FSCS) costs, if firms have the same turnover as last year, the AMI noted that firms should find their fee invoices are broadly the same. Any firms with an increase in turnover, particularly on their protection business, will see higher fees compared to 2022/23, while small firms have their fees frozen at the same level as last year.

Firms with appointed representatives (ARs) or introducer appointed representatives (IARs) will also see the levy, per AR and IAR, frozen at the 2022/23 rates of £266 and £80 respectively.

The AMI highlighted that it was the only consultation respondent to argue that £5m of costs from bringing funeral plan providers under FCA regulation should be covered by firms within that sector and not the broader fee-paying population, as proposed. The FCA agreed with the trade body’s stance, meaning mortgage intermediary firms will no longer have to contribute to this cost recovery.

AMI chief executive, Robert Sinclair, said: “AMI has again demonstrated its value to the industry by challenging charging all firms for the costs of creating a new authorised class of firms. This is an important precedent.

“We will be challenging the 10.4% increase in the cost of regulating our sector as the funding requirement has only increased by 8.4% and we do not have any explanation as to why the mortgage sector should bear a disproportionate share of the costs.

“We welcome the holding of smaller firms’ fees in these turbulent times. In a volatile interest rate environment, it is important that consumers have access to as many advisers as possible.”

The AMI is a non-commercial, not-for-profit trade body and supports mortgage intermediaries by lobbying the Treasury, the FCA and the Government, among other regulators.

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