AMI asked its members what aspect of regulation they found most difficult. Most (47%) felt keeping up to date with regulatory changes to be the greatest challenge, while 13% said completing the Retail Mediation Activities Return (RMAR), and 12% said record-keeping. Other aspects of regulatory difficulty included training and competence, obtaining KFIs from lenders and sourcing systems and Treating Customers Fairly (TCF).
Members were also asked about the greatest concerns facing their businesses. A majority (53%) said the cost of regulation/compliance while 23% feared a market slowdown. Other concerns included reduced procuration fees, client retention and maintaining staffing levels.
Rob Griffiths, Associate Director of AMI, commented: “Nearly two years after ‘Mortgage Day’ mortgage intermediaries are clearly concerned about how they can keep up to speed with the large volume of work FSA is undertaking and any further action needed as a result of that work.
“The FSA’s and European regulatory agenda is full to say the least and firms, especially those smaller firms, will need to have a firm handle on any changes that are being made. Being a member of AMI will help intermediaries make sense of the changing landscape. We provide regular update information on regulatory changes and developments and we also publish good practice factsheets on numerous topics to help advisers provide compliant advice.
“Members can also benefit from AMI membership in terms of coping with the increased cost of doing business in today’s marketplace. AMI lobbied extensively to deliver the instalments scheme which allows firms to spread the cost of their FSA fees. AMI members receive beneficial terms when using this service. Therefore if you are not a member of AMI, you are missing out.”
AMI also asked members what they considered to be the greatest opportunity for their businesses. 29% said they would be extending their use of fee-charging while 17% said they would be moving into the equity release market. 15% would be expanding their offerings providing commercial mortgages while 11% would offer second-charge loans.
Griffiths commented:
“Mortgage intermediaries are entrepreneurial by their very nature and it is interesting to see the areas they will be expanding into in the months ahead. Clearly a number of members plan to expand their use of fee-charging while an increasing number are looking to the equity release, commercial, and second-charge markets to branch into. Interestingly, the number of members looking to expand into the protection market has fallen significantly since last year (down from 19% to 6%), perhaps a result of the regulators’ ongoing scrutiny of the payment protection insurance market.”
