Following AMI's discussions with the regulator, the Financial Services Authority (FSA) has confirmed that it does not expect firms to recommend lenders or particular products that they cannot access. In a note to Ami members, Chris Cummings, director general of AMI, goes one step further by saying that there is a swing in favour of financial advice.
Key points in the note to members:
• the FSA has confirmed that it does not expect firms to recommend lenders or particular products that they cannot access
• the differential between branch and intermediary offers has narrowed considerably - and in some cases favours the intermediary again
• the lender pricing strategy of favouring their branches seems not to have worked as latest figures show that intermediary business actually increased in the year to date
• AMI will shortly be publishing a report examining lender pricing activity
• AMI has begun a stakes in the ground project to map out and record recent market events
Chris Cummings said: "Across the market, the differential between branch and intermediary offers has narrowed considerably - and in some cases favours the intermediary again. These may be early indications but they are welcome and we will be monitoring the pricing position day-by-day.
"Our stakes in the ground work will provide an accurate record of recent events, which members can call upon in case of complaints in the years ahead. However, firms will need to keep their own client specific records, particularly with regard to advice relating to the unusual market conditions under which they are operating.
"We will also shortly be publishing a report examining lender pricing activity. This will be based on an examination of capital, liquidity, demand flow management and the long term pricing issues in the industry, and will help members better evaluate the current financial position."
