AIFA and AMI form group to combat FSA fees hike

AIFA and AMI have formed the Regulatory Fees Strategy Group to combat the Financial Services Authority\'s latest hike in fees for advisers.

The group will consist of members drawn from both the Association of Independent Financial Advisers and the Association of Mortgage Intermediaries.

The aim is to have the FSA’s current proposals to increase fees in 2009/10 revised and the FSA’s budgeting process overseen by the National Audit Office in the future.

The group will be be chaired by the Director General, Chris Cummings.

Cummings says: “The strength of member feeling towards the proposed fee increases has been significant. We are issuing an open invitation to all members who would like to take part in this group to come forward.

“The proposals set out in the consultation paper pose a grave threat to many intermediary businesses, individuals and their clients.

“No business can simply absorb an increase in costs to the extent proposed.”

He argues that by its actions, the regulator has endangered some good, financially robust businesses.

Cummings adds: “Doubtless, AIFA and AMI will not be alone in expressing surprise and disappointment with the regulator at this time.

“There has never been a more important time to support the trade associations in fighting for your interests.”