AMI has also pledged that it will lead efforts to make sure the FSA is held to its promise of ‘proportionate regulation’.
Chris Cummings, director of AMI, says: “Thousands of man hours have been spent by intermediaries, lenders and regulators in laying the ground work for regulation. It is now up to the industry to make the regime work, as the risks of failure are too great.”
Cummings said he did not believe the new regulations were faultless, and aspects of the FSA’s regime would need to be reconsidered. He said some problem were already evident, with practical difficulties in the production of Key Facts Illustrations (KFIs) heading the list.
Richard Fox, chief executive of the Society of Mortgage Professionals, welcomed the AMI move. He said: “The actual ability of brokers to change regulation now is extremely limited, however they can usefully point out practical day-to-day issues that can make life easier for both themselves and the FSA.”
Fox went on to recommend that any dialogue with the regulator was of a positive nature. “It is important that the industry does not get into a confrontational relationship with the FSA at this early stage of the game.”
AMI has asked intermediaries to get in touch when they encounter examples of where the rules are falling short. AMI can then share these with the FSA in order to ensure regulation meets its prime objective of protecting the customer.
