Director of AMI Chris Cummings said the announcement was good news for brokers and in particular for small firms.
He commented: “Out of the 10,000 firms monitored by the FOS there are 1,400 cases currently under investigation and only 750 larger-sized firms with more then two complaints against them. So, overall the average chances of an intermediary firm having to pay out are relatively slim.”
Cummings went on to say that AMI had discussed the fee structure with the FOS. “We are very pleased with the results of the discussions. We have successfully represented our members’ interests to the FOS, as any proper trade body should do.”
According to a spokesman for the FOS, future costing for the annual fee will be based on the volume of complaints received from 2005 to 2006, since most complaints took several months to surface.
The spokesman added: “The declining cost of investigating cases, from £735 three years ago to a current cost of £507, has led to a surplus which we are returning by offering two free cases. This will be reviewed yearly.”
