Rob Griffiths is no stranger to the mortgage world. Having worked for Mortgage Introducer for four years, three and a half as editor, he joined AMI in March 2006.
Although not on the Board, Griffiths is part of the secretariat of the trade body, helping to lobby and formulate ideas to help the AMI membership.
“It was a new opportunity for me, offering different challenges but based on skills, contacts and experience I picked up at MI. My degree was in politics, so the move allowed me to follow this area even closer and the lobbying aspect, which I have always been interested in.”
Griffiths admits his first few months at the trade body have proved interesting and says: “It’s been a baptism of fire. The first few months are always tough in any job, but the main challenge has been getting to grips with more in-depth policy matters and getting my head around the whole width and breadth of what AMI does.”
Progression
With AMI having over 17,000 members, its progression in the past three years has been prolific, and Griffiths explains its success is down to the way the trade body works for its members, providing them with up-to-date information and industry topics, topics, which Griffiths admits often change.
When asked about regulation, he can see the potential benefits: “AMI is in favour of regulation, but proportionate cost-effective regulation, at all levels”.
“70 per cent of regulation comes from Europe. Even if you take the Financial Services Authority (FSA) out of the equation, the industry is still getting 70 per cent more regulation. As a result, AMI has to be seen at a European level, lobbying at that level. Director-general Chris Cummings goes to Brussels at least once a month to discuss various topics,” he adds.
But Griffiths admits the trade body has some reservations about the way regulation is implemented within the UK system. “The UK thinks it has to be first to instigate regulatory changes. The FSA wants to be seen as the best regulator in the world, so what we see is that, instead of waiting to see how other states implement it, the UK tends to forge ahead with both feet. We think that sometimes the UK should just become part of the pack.
With so much regulation to take in, Griffiths says AMI works hard to keep its members up-to-date, provides fact sheets, newsletters, which smaller firms that don’t have a compliance department to fall back on can use as a starting point. It also covers new product and business areas member firms might like to get involved with.
Future
Looking to the future, AMI’s associate director believes the market needs to focus more on the introduction of Home Information Packs (HIPs), but admits he can see why advisers have their doubts about the implementation. “HIPs could have a major impact on the work of mortgage intermediaries. Part of our job is to make mortgage intermediaries aware of the threats and opportunities surrounding HIPs and to make sure they are doing something about it. However the timeline is tight as to what we can expect. Everyone is looking to the dry-run and the results we get from that. We will only fully understand HIPS when it physically becomes part of the deal when you sell your house.”
He admits many advisers are worried about HIPs due to the similarities with Self Investment Personal Pensions (SIPPs) regulation, which was dropped by the government. “I can see the concern of AMI members regarding HIPs,” he says. “A lot of people have SIPPs in the back of their mind and the u-turn on that, so I think that might be why brokers are considering what HIPs can do, but perhaps not preparing for it.”
Continuing the concerns affecting mortgage intermediaries, he admits the next few months could be challenging, with the introduction of new players into the market, and increasing competition. But he predicts that some of the new entrants will not have as big an impact as some expect. “I can see people getting loans and credit cards from the likes of ASDA, but selling your home and getting a mortgage are such huge decisions that people tend to want independent advice. Such a move could be compared to how people viewed the internet. A lot of people do research on internet, but still go to brokers to make sure they are aware of every product and because of the need for face-to-face contact for such a commitment.”
Equity release is another area AMI is taking a good look into over the coming year. “We are really bullish about the equity release market and where it could go, but what we are not prepared to do is say that this is a sector that every member should be involved in. Advisers need to be aware it is defined as a ‘high risk’ area by the FSA. We think firms should certainly be looking at the market as a possible business expansion, but need to be serious that changes will have to be made to their business model in order to do so. It’s not something you can do off the cuff, it’s an area that needs to be thought carefully about, but we think it is a market that will grow.”
Lead generation
Despite market enhancements across the board, there are still some worries AMI is aiming to rectify. Lead generation is an area it has recently stepped up its coverage of, with the announcement of the launch of a code of practice for lead generation firms to sign up to. Griffiths says: “AMIs involvement on the issue came from both sides. Members are using lead generation, and on that side, some members were being stung by less than reputable firms. We also had lead generation firms come to us asking to facilitate something, because it was felt that the rotten apples were spoiling the rest of the market. We wanted to draw something up that would allow members a greater degree of confidence. It’s been talked about and it’s now a case of pulling together the interested parties.”
AMI has a busy year in store, and Griffith urges non-members to consider the benefits of joining. “We send newsletters to our members on industry topics as well as putting together conferences and seminars, which are free. We have a technical helpdesk for members and we actively engage with the FSA on all levels. Use the AMI resources.
“The more members we have the stronger voice we have with decision makers. Non-members are effectively holding the industry back.”
