Your February update from AMI Chief Executive Robert Sinclair

AMI Chief Executive Robert Sinclair gives his February update, discussing the latest issues in the industry and how we can tackle them…

Tackling barriers: The Protection Gap

AMI Senior Policy Adviser Stacy Penn discusses the Perception Gap in the protection market, in this article originally published in Moneyfacts…

The FCA in the insurance space – a more assertive regulator?

Following introduction of Consumer Duty, we have seen signs the FCA is shifting towards becoming a more assertive regulator…

The Perception Gap

AMI Senior Policy Adviser Stacy Penn discusses the findings from AMI’s latest Protection Viewpoint – The Perception Gap, in this article written for TMA Club…

Consumer Duty: The next steps – what does 2024 have in store?

On 6th December 2023, the FCA hosted a webinar titled Consumer Duty: The next steps – we draw out the key points of relevance to mortgage intermediary firms…

Your January update from AMI Chief Executive Robert Sinclair

AMI Chief Executive Robert Sinclair gives his January update, reflecting on the challenges and opportunities of the year ahead…

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.

2017 has started with good news from Santander on procuration fees. For many years now intermediaries have been at the heart of the Santander mortgage business. In keeping with their developing automated solutions that allow customers to transact both directly or via an intermediary, paying a fee where the broker takes responsibility for the advice is the right thing to do. It is to be hoped that as the year progresses more lenders see that by making such a payment this enhances and supports their service offering and supports good consumer outcomes irrespective of the route they select. It is to everyone’s mutual benefit.

However there are two big issues facing the intermediary community this year. The first is the FCA Mortgages Market Study. This will look at how the tools available, including advice, help consumers make effective decisions and if there are commercial arrangements between firms that act to the detriment of consumers. The main focus will be on those two issues with a sub-text asking if digital solutions could help deliver better information or advice.

What is becoming clear is that there is a real agenda within the FCA to assist technology based new market entrants. Many new firms are arguing that the regulatory rule book, capital requirements and the need for adherence through the permissions process is acting as a barrier to entry and slowing their ability to innovate. This is caused in part by the time it takes to understand and adhere to complex rulebooks and the need to deliver complex reporting to the regulator. These start-ups, often run by non financial services experts, have a different view of the world. In trying to promote innovation and competition the FCA wants to help them.

To assist we are likely to see Artificial Intelligence being employed to interpret the rule book potentially making many policy based compliance experts redundant. Also by allowing straight-through flow of product sales, the need to accumulate complex reports may be obviated. This will work really well for start-ups with no legacy or back-book. However for complex multi-product firms with legacy systems this may prove impossible creating a real edge for new firms. I wonder if the regulator has fully thought through a market led by virtual boutique systems, with no offices, staff or capital that can evaporate quicker than the England cricket team. I hope that we will not see reasoned stability based on decades of learning sacrificed on the altar of innovation.

The second challenge is on the new Financial Services Compensation Scheme. We will have to decide what scheme we would like. What is clear is that the steady avalanche of claims hitting all parts of the advisory community will continue. With an FCA that appears incapable of spotting poor products and advice until far too late, the real debate has to be on who pays and when. At the moment this appears to be free for consumers as they can take risks that are obvious and be indemnified against fraud by good firms.

We need to have a robust debate about the quality, exclusions and cost of Professional Indemnity Insurance, whether unregulated investments should be captured at all under the Compensation Scheme and government and regulators need to explain better why a product levy is not the fairest and most appropriate way to protect consumers. Such schemes operate and control the travel and aviation industry very effectively, so why not ours!

X

Forgot Password?

Join Us