Simon Conn has been involved in the mortgage market since 1980. He has a particular focus on small broker firms and the growing market for overseas properties, a sector that Conn’s company, Conti Financial Services, is heavily involved in. “I have been in the industry for 25 years, starting with Legal & General in 1980, and culminating with my managing directorship of Conti. I also have an interest in the overseas market and I expect this to be a growing sector, especially with greater European integration and the continued investment opportunities,” he says.
Constituents
Having been an AMI Board member for over a year, Conn is responsible for representing smaller firms – a sector he argues is potentially the most important and has the most to offer. “I think the firms on the ‘ground floor’ of the industry have a significant role to play,” he says. “But I don’t think brokers realise how much influence they can have if they bring their concerns to the AMI Board. I have an open door and I welcome any feedback, as long as it is constructive and not just negative. We want to hear how problems can be resolved, and not just be told the bad parts of the industry; we want to know how to make these better.”
He adds that his constituents should not be afraid to contact him and urges them to refer any questions or queries to him to see if he can help or put forward any concerns to the Board. “My constituents sometimes have different interests and dealings with parts of the market that I am not involved with and I would urge brokers who have any concerns to put them to me. I will do the best I can to help.”
Market upheaval
Conn admits market upheaval during the past 12 months has impacted across the industry, with the small brokers experiencing similar worries to the rest of the market. He draws particular attention to worries he had over Self-Invested Personal Pensions (SIPPs) and how changes to what could be included in them, might or might not benefit the consumer. “I was very worried about SIPPs before the government’s u-turn and I am not convinced by Home Information Packs (HIPs) as I think it has too many commercial interests rather than what is best for the client. I am not sure the industry is looking at the end user.”
He also suggests that AMI and the regulator will be looking at rectifying the loss of the personal approach within the financial sector and argues the move to a fee-based offering has alienated a proportion of the market. He says: “I think the industry has overlooked the change to a fee-based approach rather than commission as now people can’t afford some of the upfront fees.”
He adds that providing clients with a personal service has been eroded by the increased use of technology. “It is clear people don’t like call centres and distant conversations and much prefer face-to-face meetings. I understand that companies use technological solutions as a shortcut, but I don’t think enough research has been done to see if people actually value this or if they prefer a personal touch,” he argues.
Benefits and frustrations
In the run-up to regulation, Conn revealed his concerns over how the FSA would impact and regulate the market, claiming it may not be approachable. However, he is happy to be proved wrong, with AMI helping market transition in a regulated environment, bridging the gap between the industry and the FSA.
“AMI is a respected voice in the industry and allows others to have their concerns raised,” he says. “I joined as I felt the trade body could put the views of the industry to the FSA and thankfully the FSA is prepared to listen to what we have to say and will have a discussion with us on any concerns, which can only be a good thing.” He agrees that the strength of the AMI Board, all practitioners themselves in the mortgage market, was another benefit with the whole market clearly represented within the Board at its monthly meetings.
However, despite the obvious strength and diversity of the Board and organisation, he shares fellow Board members concerns that non-members are able to enjoy AMI benefits. He also believes everyone in the industry should be given the opportunity to join, and not be dictated to by their firm or network. He says: “I don’t think it is fair that a network or company can decide their membership cannot become part of AMI. They shouldn’t be dictated to and if someone decides in the head office that they can’t join AMI then they should have the opportunity to question that decision.”
Conn further argues that the industry may not see the benefits of AMI first-hand, with the FSA never likely to publicly commend AMI. He says: “Due to the role we play, our meetings and what we achieve is to some extent confidential, but since the introduction of regulation we have definitely had an impact.”
He adds that AMI will respond to any market movement or concerns, with action not dictated by the meetings process. “Board members are basically on call 24/7 and if an issue comes up that director-general Chris Cummings thinks deserves attention then he will ask us for a quick response.” He states issues that come up during Board meetings or as a result of industry comment dictate the AMI newsletters, focusing on market trends and worries.
Challenging time
With a growing interest in the overseas market and industry changes from MiFID to HIPs all set to impact the market, Conn admits 2006 will be a challenging time for the market. However he is enjoying this period of change and integration and states his desire to be involved with AMI for “as long as they will have me”.
Grant Bather is a news reporter at Mortgage Introducer
Simon Conn is managing director of Conti Financial Services
