KM: Why has AMI decided to separate from AIFA and when did you begin to think about it?
SS: AMI has not always been part of AIFA. Before M-day, there was a previous organisation called the National Association of Mortgage Brokers, which become AMI, which then went into AIFA nine years ago.
We felt it was time to make the move. AIFA and AMI have separate challenges ahead on the regulatory front and this decision allows us to completely focus our attention and resources on that and the needs of the mortgage intermediary.
We have kept the separation under review for months. As a board, we have to keep thinking about how we can best serve our members and it took some months to be as confident as we are about our finances and ability to make this move.
KM: Is the split immediate or will there be a transition period?
SS: With effect from today, we are separate. We have some legal hoops to go through, but to all intents and purposes we are now separate bodies.
AMI will now have offices in Milton Keynes and we will use members’ offices when we need to in London.
KM: AIFA has faced significant financial difficulties. How will AMI ensure it is financially stable?
SS: We are very confident that we have the ability to do that.
It was the unanimous decision of the board. We have large and small firms funding AMI and we have taken soundings from our associate partners. The income flows that AMI generate can be carried on.
We don’t need a heavy weight infrastructure and our policy is covered by Alex Revell and Robert Sinclair. We can live within our modest means.
We have no doubt whatsoever that we are financially sound.
KM: How many members will AMI now have and will IFAs doing mortgage business be part of AMI or AIFA?
SS: There won’t be any loss of members with this move, who currently total around 8,000. AMI represents 80% of all mortgage intermediaries and we are confident that we will remain the premier trade body for them.
As for IFAs, I think it will be down to the intermediary themselves. Mortgages are our key focus, while AIFA lobbies on wider issues that affect IFAs, such as investments and pensions.
I would imagine that firms will look at where their main business lies and make a choice, but it’s perfectly possible that IFAs will be members of both.
KM: What effect will this have on brokers?
SS: AMI has always had its own constitution and board, so none of that will change and it is effectively business as usual.
This move will not result in any change in fees, as our financial position is based on the income that we have and our forecast.
As for representation, it can only be positive. We view this as an opportunity to provide a better, more focused and dedicated service to mortgage intermediaries.
In addition, members will see a revised and improved website, and revised and improved communications coming soon.
