Aifa and AMI to represent IFA interests in fight for FSA proposals revision
The Association of Independent Financial Advisers (Aifa) and the Association of Mortgage Intermediaries (AMI) have formed a Regulatory Fees Strategy Group in response to the proposed FSA fee increases of 30% to 70% for medium to large intermediary firms. Fees for small firms have been frozen.
Chris Cummings, director general, Aifa and AMI, who is chairing the group, said: "We support the case made by the FSA to charge the banking community more for its regulation - but cannot agree with the unwarranted level of fee increases proposed for the intermediary community, that has not caused the banking crisis but have been affected by its fallout.
"This group will represent the interests of the intermediary community in our campaign to have these proposals revised and FSA budgeting process overseen by the National Audit Office. We are issuing an open invitation to all members who would like to take part in this group to come forward.
"No business can simply absorb an increase in costs to the extent proposed. The regulator has endangered some good, financially robust businesses, through these proposals."
The British Insurance Brokers' Association (Biba) has also voiced concerns over the proposals.
Eric Galbraith, Biba's chief executive, said: "Insurance intermediaries are recognised as one of the very lowest risk groups to the regulator's statutory objectives and yet are facing huge percentage year-on-year increases for the levies they pay to both the Financial Ombudsman Service and the Financial Services Compensation Scheme. This is patently unfair and puts insurance intermediaries in the UK at a significant competitive disadvantage to their peers elsewhere in Europe."
"We want to see the FSA give a much more detailed justification for these increases."
Cummings added: "There has never been a more important time to support the trade associations in fighting for your interests."
