From 2005 firms will face a single invoice for FSA fees, FSCS and FOS levies. AMI estimates that firms will have to pay substantially more than they currently do for subscriptions to the Mortgage Code and MCAS.
Chris Cummings, director of AMI, said: “Since the proposals for periodic fee calculations include payment of the full amount for a firm’s core area of business, with additional areas subject to a 50 per cent discount, incorporating this ‘secondary activity discount’ into FOS and FSCS contributions would be a fair, consistent and proportionate approach.”
He went on to express concern that intermediaries active in both mortgage and general insurance could end up being levied twice.
Tony Jones, managing director of Skipton-owned distributor Pink, commented: “I am sure that AMI will fight hard to ensure that firms do not end up being charged twice for doing the same work they currently do.”
FSA spokesman Robin Gordon-Walker said: “While we will be collecting all the fees, the FOS and FSCS will be in charge of setting their own fees.”
“We welcome AMI’s response and will finalise our policy statement in due course,” he added.
The final policy statement is expected in the autumn.
