The decision was made at a meeting on 28 April held by the FSA in conjunction with the Small Business Practitioner Panel and FSCS, where trade associations and credit providers were brought together to discuss the development of a market solution.
Representatives of the trade associations will be meeting with selected providers shortly to negotiate the terms on which finance might be provided.
Graeme Ashley-Fenn, director of contact, revenue and information management at the FSA, said: “We are delighted with the unanimous buy-in from the trade associations and are very keen to implement a suitable solution.
“Subject to negotiations, we are confident we have the basis for delivering a market solution in sufficient time to enable payment of our invoices which will be sent out from June onwards.”
Bill Warren, director of The Complete Network and board member at the Association of Mortgage Intermediaries (AMI), said: “The FSA has been quite supportive to get to this stage.
“We are in the final throws of the plans being finalised. I would be very surprised if nothing came out of this. Paying by instalments is not just limited to smaller firms’ needs. Some of the larger firms have also said they would also like to pay their fees in this way.”
London-based sole broker Roy New commented: “I think this a good move. Us smaller firms and one-man bands are having to pay more than the larger firms if you look at it on scale.
“There is a feeling the FSA is picking on the smaller brokers. So any assistance to help ease the burden of paying all these fees is welcome.”
