AMI sees little hope of halting EC advice plans
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Robert Sinclair
AMI says it is unlikely the CML will be able to convince the European Commission to scrap its proposals regarding lenders offering advised sales.
The EC’s mortgage market directive says creditors and intermediaries offering an advised service must present a sufficiently wide-ranging analysis of the products on the market to say they are offering advice.
But speaking at the Countrywide National Property Showcase seminar last week Jackie Bennett, head of policy at the Council of Mortgage Lenders, said it is confident of stopping the plan.
She told delegates: “It’s interesting how the directive has tried to tackle advice. The way it is drafted would make it difficult for lenders to give advice on their own products because they would have to offer a wide range from the market.”
Bennett says there is a lot of support for the CML to get the rule redrafted.
But speaking at the Mortgage Business Expo last Friday, Robert Sinclair, director of the Association of Mortgage Intermediaries, doubted the CML would triumph.
He believes the proposal is the biggest issue for lenders in 15 years and there will be no room for manoeuvre.
Sinclair told delegates: “Given that the proposal has been carefully considered by the EC, the CML will have to lobby hard to persuade it that it is not the right thing to do.
“While I understand the concerns over the issues it will cause UK lenders, the EC is coming at this from the perspective of consumers. I think the issue will be decided in the European parliament.”
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