AMI offers FSA support for depolarisation consultation

The Association of Mortgage Intermediaries has offered its support to the Financial Services Authority’s consultation on depolarisation but says changes still need to be made.

The FSA has announced plans to consult on the impact of depolarisation and its disclosure documents in October and has instructed advisers to comply with its rules on disclosing product charges until then. The move is part of the FSA’s consultation on the Markets in Financial Instruments Directive.

Within this, the regulator is proposing to maintain the menu of charges and the Initial Disclosure Document while it continues to undertake the post-implementation review of the regime, which was announced when the new rules were introduced.

Rob Griffiths, associate director at AMI, says: “We’re supportive of the FSA’s position. While we recognise that the menu of charges is far from perfect and is complex, we would not wish to see its removal.

“Under MiFID, firms could be allowed to disclose information as they wish and we would prefer to see a level playing field maintained.

“At present every advisory firm must disclose services, scope of advice and remuneration upfront. With MiFID there is no such upfront ‘shopping list’ menu requirement. We do not want to see MiFID firms operating on different standards, given that firms are subject to the same standards now.”

He says that by June the FSA should have completed its review and there may be substantial changes.

The FSA says it is approaching the review with an open mind.