Homeloan Partnership (HLP) is reminding DA firms who are worried by the likely effects of the MMR and thinking about changing to AR status not to leave their decision too long and risk incurring a further year of fees paid to the FSA.
HLP’s managing director, Chris Tanner, says that every year firms leave it too late and end up having to pay the FSA an extra year’s fees.
He said “It is particularly important this year with MMR hanging over the market like a pall and many DA firms considering for the first time that the burdens likely to be imposed by the MMR could make their current status untenable.
“I really would urge those who are thinking about moving across to AR status that this is the time to start the process. There are many cases where the decision is taken too late and firms trade through the April 1st deadline and become liable for a whole year’s fees.
“The FSA does not do rebates. I have often talked to firms that have wanted to move to AR status but left it too long and ended up paying for something that they no longer needed or wanted.”
He added “The MMR is unlikely to go away and even if watered down as a consequence of the current consultation, it will still mean increased cost to DA firms both in financial terms and time spent staying compliant. The advantages to AR membership become more compelling and rather than wait too long, I hope that firms thinking of taking the step don’t leave a decision to start looking at it until the New Year in the hope that the MMR will go away.”
