The instalments scheme was negotiated by AMI and other trade bodies to help members spread the costs of FSA, FOS and FSCS levies. Firms have 14 days from the date of their FSA invoice to apply for the scheme. Those who have not registered their application with instalment provider Premium Credit will not be ineligible for the benefit.
Chris Cummings, Director General of AMI commented: “We lobbied for the creation of the instalment scheme to help members budget for the full range of regulatory costs. As an AMI member, firms can rely on guaranteed acceptance with no underwriting and lower interest rates than if they were not a trade body member.
“The scheme also allows members to borrow more through the course of the year, where extra funds are needed for FSA purposes. At a flat rate of 3.3%, the cost of credit compares favourably with other unsecured business lending.”
AMI lobbied to ensure an instalments scheme would be in place for regulatory fees. This is the first time that the vast majority of intermediary firms have been subject to FOS, FSCS and FSA fees, which this year also includes payment for the six month ‘stub period’ from Mortgage Day to April 1st.
Cummings adds: “I am deeply concerned about the layering of cost upon good firms. We have called for a review of the way the FSCS is funded and need to keep a very close watch on FSA and FOS costs. The instalment scheme will help pay today’s bills but we are also focussing on the bigger issue of reducing tomorrow’s.”
