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AIFA and AMI call for member action on FSA fee hikes

The Association of Independent Financial Advisers and the Association of Mortgage Intermediaries has issued a joint statement calling for members to respond to the Financial Services Authority fees proposals.

The Regulatory Fees Strategy Group, which includes representatives from across the IFA and mortgage broker community, was formed in response to the proposed fee increases from FSA, and has set out a detailed campaign plan.

Chris Cummings, director general of AIFA and AMI, says: “FSA has now published its annual budget and we believe that the proposed fee increases for intermediaries are too high.

“The FSA needs to look again at these fee blocks, in order to reduce the costs. If this means other, higher risk, business models in other fee blocks pay more, so be it. Those who have caused the crisis should pay more to be regulated.

“If these proposals go through unchecked, IFAs and the wider mortgage intermediary community will have been unjustly penalised for the failure of others.

“In response to these concerns, it was decided by the Fees Strategy Group that immediate and decisive action is needed. We are calling on all members to take action and submit a response to the fees consultation. In order to facilitate this response we are today issuing a key points briefing that should be covered in members’ individual responses to FSA.”

Cummings says it would like to see FSA use the coming year to reconsider its funding model under a full scale funding review.

It says such a review should lead to both the FSA budget being subjected to regular scrutiny by the National Audit Office, and the Public Accounts Committee overseeing FSA spending.

He adds: ”It is essential that the intermediary community speaks with one voice on this issue.

“The combined response from members to FSA on issues such as the RDR and the Financial Services Compensation Scheme has shown the difference it can make. There has never been a more important time to stand behind your trade association and help us to fight on your behalf.”

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