The FCA has issued its 2023/24 fees and levies consultation. Whilst still at consultation stage, the proposal is to charge larger firms in the mortgage intermediary sector 10.4% more in both the mortgage and protection classes. However, as the FCA thinks that firms have had a good 2022, the actual fees rates are flat for mortgages and only 7% higher for protection.

Due to lower FSCS costs, if firms have the same turnover as last year they should find their fee invoices are broadly the same. Firms with an increase in turnover, particularly on their protection business, will see higher fees compared to 2022/23.  Small firms have their fees frozen at the same level as last year.

Firms with Appointed Representatives (ARs) or Introducer Appointed Representatives (IARs) will also see the levy per AR and IAR frozen at the 2022-23 rates (£266 and £80 respectively).

AMI has also seen lobbying success. We were the only consultation respondent to argue that £5 million of costs from bringing funeral plan providers under FCA regulation should be covered by firms within that sector and not the broader fee-paying population, as proposed. The FCA agreed with our stance, meaning mortgage intermediary firms will no longer have to contribute to this cost recovery.

Robert Sinclair, Chief Executive of AMI said:

“AMI has again demonstrated its value to the industry by challenging charging all firms for the costs of creating a new authorised class of firms. This is an important precedent.

We will be challenging the 10.4% increase in the cost of regulating our sector as the funding requirement has only increased by 8.4% and we do not have any explanation as to why the mortgage sector should bear a disproportionate share of the costs.

We welcome the holding of smaller firms’ fees in these turbulent times.  In a volatile interest rate environment, it is important that consumers have access to as many advisers as possible.”