The FSA’s Annual Funding Requirement for 2011/12 was released yesterday and AMI has called for a detailed FSA response to explain what the mortgage industry’s £28m fees are spent on.
And Robert Sinclair, director of AMI, says the fall in broker numbers means the small reduction in fees will have little impact.
He says: “Indeed, given the burden will be borne by fewer intermediaries, most firms will pay at least 15% more.
“Last year’s fees were of a similar amount but included costs associated with individual registration. As this cost has now been delayed, we must ask why any savings do not appear to have been passed on to the intermediary sector.”
He adds: “With the significant increases in fees for our lender partners, the mortgage community must ask what it is getting for its £28m in total costs.
“This figure seems disproportionately large given the total cost of £4m paid in 2004 under the Mortgage Code Compliance Board. This requires a detailed response from FSA.
“FSA must ensure that costs accurately reflect the systemic risk posed by individual sectors, and the relatively small risk posed by the intermediary community, which is better secured by the vigilant lender community we have today.”