Paul Fielding represents the small firms on the AMI Board. A former teacher, Fielding joined the financial sector 20 years ago. Having seen how the industry works and has changed, he was keen to get involved with AMI, and realised the importance it could have on the market.
He quickly realised the need to look after the small firms who, Fielding believes, are under-appreciated by the market. He says: “If you look at the make up of boards, you always get the Laker’s and the Boulger’s; respected people who are part of large, respected organisations within the market. But who is shouting for the little guy? The small firms have to put up with the same problems as the larger organisations and I stood for election on this platform, and said that I would try to represent the small firms and put forward their concerns and problems. The industry is built on an army of little guys, the one and two-man bands and small firms, and they have to be represented and looked after.”
Taking up the issues
Having been appointed, Fielding was quick to take up the issues and challenges affecting his constituents. He welcomed the introduction of regulation to the market, but says the Financial Services Authority (FSA) must continue to realise the needs of the industry, helped by AMI and other trade organisations. “The FSA has helped to clean up the industry, cutting out many of the cowboys and instilling good discipline within brokers, he says. “However, it seems to have forgotten how difficult it is to implement change, especially for the smaller brokers. There was a massive degree of change in a short period of time, and the changes could have been more gradual. Although regulation has got rid of the cowboys, the fast-paced change also resulted in many decent advisers leaving the mortgage market.”
He adds the introduction of the FSA into the market bought up a host of new problems for brokers. He explains: “There is a perceived lack of support by the FSA towards small brokers and it can be lonely stuck out there on your own. Another major problem was remuneration. Brokers should be paid to give advice. The proc fee is an introductory fee, but does not cover the costs of giving advice. Following the advent of regulation many brokers had the opportunity to introduce fees for advice. The industry is going in the right direction, but brokers need to be sure the pricing is fair and reasonable. There are still some brokers ripping people off with their fees and the culture of charging £2,000-£3,000 for mortgage advice is ludicrous. If this carries on, then consumers will be left with the impression that the industry is still unfair.”
He welcomes the FSA’s move to improve its dealings with small firms, and says AMI’s continued push to improve market standards and the relationship it has with the regulator and the market can only help the mortgage industry.
Successful relationship
With AMI representing all sectors of the mortgage market, and each of the Board members bringing their own expertise to proceedings, Fielding says the relationship it has with the FSA has proved successful. He adds the Board meetings and objectives the organisation can achieve should not be underestimated. “AMI will never take credit, but will have an integral role to play. Much of what the Board and the organisation does is conducted behind the scenes.”
“Managing to get 18,000 members from a standing start just three years ago is a fantastic achievement and people realise the benefit it has,” he adds. Fielding says the guidance the trade body gives, through its website, factsheets and newsletters, as well as its events, make it easy to make contact with, and a helpful aid for mortgage intermediaries.
Future
With the market set to undergo further reform, through the introduction of Home Information Packs (HIPs), and a principle-based approach to regulation, Fielding says AMI will remain busy, and highlights areas he believes AMI will be involved in over the coming months. “The internet and advancement of online technology make business, in most cases, a lot easier and I can only see this market growing. The lender costs and logistics must be huge, but it shows how lenders are helping speed up and simplify the whole process.”
Fielding, however, casts doubts over HIPs. He says: “HIPs are going to be part of the market – they are part of the agenda and represent a good opportunity for mortgage intermediaries. But the public will quickly realise the costs of HIPs. If the fees are upfront then some might not be able to afford it, which could limit client choice.”
Fielding believes the equity release market will prosper, as a result of parents helping first-time buyers get in to the market. “Parents are stepping into the breach to help their sons and daughters, so I can see the equity release market growing because many first-time buyers can’t buy without this help.
“Something needs to be done to help the bottom end of the market – it must be very difficult for ‘new blood’ to get onto the property ladder. The government has started its shared ownership scheme to help first-time buyers, but this needs to be developed nationwide, not just in the South of England.”
Fielding says AMI has much to do over the coming months, and has set a target for the market to achieve. “I will be happy to see the day when the mortgage intermediary is held in the same professional regard as the trusted family solicitor, or seen in the same light as accountants, doctors, and so on. That is what we must aim for.”
Grant Bather is assistant editor at Mortgage Introducer
Paul Fielding is an independent mortgage and financial adviser at Cambria Financial
