AMI welcomes news of FCA rebates for Consumer Credit licensees

The Association of Mortgage Intermediaries has welcomed news that the Financial Conduct Authority intends to provide rebates for longer-term consumer credit licensees as they transfer over from the Office of Fair Trading regime.

The FCA has also stated its plan to provide discounts for licensees who register early with them as the regulator prepares to take on its new consumer credit remit from April 2014 – an idea first mooted in the Treasury in March of this year.

Firms that currently hold consumer credit licenses with the OFT will be able to register with the FCA from today to begin the process of transferring their license to the financial regulator.

The government has also announced that there will be a rebate programme to reflect the closure of the CCL regime under the OFT. Further to this, a 30 per cent early registration discount for those firms that register before 30 November.

AMI Chief Executive Robert Sinclair says the association had expressed a concern regarding unnecessary fees paid by license holders for indefinite consumer credit licenses under the Office of Fair Trading.

Sinclair says: “We are grateful that the government recognised the issues raised and will offer rebates to those firms that have already incurred the substantial cost of obtaining a new consumer credit license since 2008. These broker firms should not be unfairly disadvantaged because of unforeseen changes to the regulatory architecture.

“We would encourage firms not to delay in checking that their license details are correct and registering with the FCA to take advantage of the 30 per cent discount.”