FCA Consultation on Fees & Levies for 2024/25

Members may have seen that the FCA issued their annual consultation on the fees charged to firms on Tuesday 9th March – AMI comments…

Consumer Duty has made vulnerability about ‘characteristics’ rather than ‘binary’

Chloe Timperley’s comments from the British Specialist Lending Senate 2024 regulatory expectations around vulnerability…

Your March update from AMI Chief Executive Robert Sinclair

AMI Chief Executive Robert Sinclair gives his March update, including the Mortgage Charter and the FCA annual business plan…

Sexism in the City feedback: recommendations for firms

The feedback report for the September Sexism in the City paper has been released. We are cited in the report, relating to our event code of conduct…

AI will not replace ‘divergent or creative’ thinking

Chloe Timperley’s comments from the British Specialist Lending Senate 2024 on generative AI and regulatory expectations around vulnerability…

Mortgage Brokers: The climate is changing, should you?

The Mortgage Climate Action Group (MCAG) is delighted to invite you to its upcoming webinar: ‘The Climate is Changing, Should You?’ on 18th March at 10am…

Edit Content

Log in here for full access to all our great content

 

Please log in below with your username (which is your email address), using all lower-case letters.

 

Forgotten your password?
No problem, simply tell us you have forgotten your password to receive instructions instantly via email.

Having problems logging in?
If you are a current member but are unable to login, please first make sure you are using all lower-case letters for your username/email address. If you still have difficulties, please contact us via email at info@a-m-i.org.uk so we can rectify your problem.

Not a member?
Learn more about the benefits of becoming a member or apply online and we will be in touch.

Back in March the FCA communicated six new permission categories relating to debt activity.  Regulatory work has since moved forward with the release of the first draft of how the Senior Managers & Certification Regime (SMCR) will be applied to the rest of the industry, and a more polished version of how the Financial Services Compensation Scheme will be structured from 2018/19.

Whilst these will result in significant changes for firms, it is worth revisiting the impact on consumer credit permissions, despite the fact mortgage brokers should be exempt as such activity is really part of their intermediation.

If firms decided that they carry out debt management activities then they will have had to allocate the compliance oversight function (CF10) to an individual, as well as meeting minimum capital requirements.  Under SMCR, if a firm is already required to nominate a CF10 then they will need to apply the equivalent Senior Management Function.  So with this individual captured under the regime, they will have personal responsibility and accountability for the firm’s compliance.

One of the proposed changes to the FSCS is the extension of its coverage so that claims relating to debt management activities will be eligible. The firms that will contribute to these claims include those with a debt adjusting or debt counselling permission, with the levy based on a firm’s annual debts under management.  This should therefore exclude mortgage intermediaries from contributing to this class.

Firms will need to review the activity they carry out and decide what permissions they should hold.  AMI has issued guidance to member firms which outlines the permissions we believe the majority of mortgage advisers require.  Firms should also consider whether they should be reporting any income relating to consumer credit permissions, as in many cases of consolidating debt into a mortgage contract it is likely to be more appropriate to attribute the income to the mortgage business.

Aileen Lees
Senior Policy Adviser

X

Forgot Password?

Join Us