The Financial Conduct Authority (FCA) recently proposed an increase in the levy on brokers, which has been met with strong opposition from the Association of Mortgage Intermediaries (AMI). The proposed increase would see the levy rise from £15.9 million to £19.9 million, a 25% increase.
AMI has argued that this proposed increase is unjustified and could have a detrimental effect on brokers, who are already facing a challenging market. AMI has also argued that the FCA’s proposed increase does not take into account the impact that it could have on brokers’ ability to provide advice and services to customers.
AMI has argued that the FCA’s proposed increase is disproportionate and could lead to a decrease in competition in the market, as well as an increase in costs for consumers. AMI has also pointed out that the FCA’s proposed increase would disproportionately affect smaller firms, who are already struggling to remain competitive.
AMI has also argued that the FCA’s proposed increase would be detrimental to the industry as a whole, as it could lead to a decrease in innovation and investment in technology. This could have a negative impact on customer service and the quality of advice provided by brokers.
In response to the FCA’s proposed increase, AMI has launched a campaign to oppose the increase and is calling on the FCA to reconsider its decision. AMI is also calling on the government to intervene and ensure that any increase in the levy is proportionate and does not have a detrimental effect on brokers or consumers.
Overall, AMI’s stance against the FCA’s proposed increase in the levy on brokers is understandable and should be taken seriously. It is important that any increase in the levy is proportionate and does not have a detrimental effect on brokers or consumers. It is also important that any increase does not lead to a decrease in competition or innovation in the market.