Robert Sinclair, director of AMI, said: “The FSA proposals represent a substantial increase in fees for mortgage intermediaries who already face a tough economic situation. Mortgage intermediaries were already paying a disproportionate share of regulatory costs, which are ultimately and inevitably met by consumers.
“For those mortgage intermediaries paying just minimum fees and who also hold insurance permissions the increase will be limited. But for larger firms, and those without insurance permissions, their FSA fees will rise in some cases disproportionately and significantly.
He said AMI welcomed the fact that the FSA decided not to raise the fee tariff rate for mortgage intermediaries from that proposed in the consultation paper.
AMI said it would continue to push for a fairer cost distribution system for the intermediary sector.
The Association of Intermediary Financial Advisers (AIFA) said the smallest directly authorised firms will see reduced fees but others would not be so lucky.
Chris Cummings, director general of AIFA said: “Overall, the cost per adviser has increased by between 2% and 9% over the consultative rates for IFAs not holding and holding client money respectively. This is due to the combination of a further increase in funding requirements combined with a small reduction in overall numbers of advisers.”
