The FSA last week announced the final regulatory reporting requirements for mortgage and general insurance firms including several amendments designed to help smaller firms, following consultation.
But the Association of Mortgage Intermediaries is concerned these changes do not go far enough.
Smaller firms that had an annual income in the previous financial year of £60,000 or less have now been excluded from the requirement to report mid-year financial information for the first year. Thereafter, these firms will have to report on a six-monthly basis.
The FSA says it has made the change due to concerns about the costs to smaller brokers. It is also giving lenders and providers more time to capture information about advised and non-advised sales by introducing a transitional period. During this time firms will not be required to provide such sales data, giving them time to adjust systems and reduce costs.
However the FSA has not budged on the time limits for reporting despite industry concerns. Firms will have 30 working days to prepare information on their financial activities and submit it to the regulator.
Sarah Wilson, director of high street firms at the FSA, says: “For mortgage and general insurance firms this is the last part of the future regulatory regime to be finalised. We have published a guide to help smaller firms access the FSA Handbook and find the rules relevant to their firm.”
But AMI director Chris Cummings says: “We are pleased smaller firms have been given a break but it should have been extended to firms that earn below £250,000.”