The Rt. Hon. John Gummer, Lord Deben, who will continue as chairman of AIFA & AMI, said: “AMI has grown significantly over the past five years, but it has also grown up. It is now in a position to stand on its own two feet and be financially autonomous. The AIFA Council and AMI Board feel now is the right time for it to set out in its own direction.”
Vicky Hartley: Why make this move now?
Robert Sinclair: AMI has 8,000 members and represents 80% of the mortgage broker market. It wants parity for its members and to be in the position to focus solely on the issues that concern them including the European mortgage directive and the Mortgage Market Review (MMR). Nothing should get in the way of these key issues. This move will give our members more focused representation. If any members decide they don’t want to come with us they have that right.
VH: Was the board unanimous in this decision?
RS: There has been on-going discussion on how AMI fits with AIFA for a while. Last September the decision was made formally, but the council agreed the deal yesterday. We will co-exist with AIFA until we can separate in a way that works for all parties.
VH: How will new AMI differentiate itself from old AMI?
RS: One of the best things about this move is that we don’t want to be in conflict on any front or have our independence compromised by anything. We will completely stand-alone in terms of policy for our members and that will be a fundamental principle.
VH: What will your members see next?
RS: It’s business as usual in the short-term. But soon they will get more from the organisation and see more from me as well. There will be no change to fees or the AMI infrastructure.
VH: How will AMI finance this?
RS: The board are absolutely happy that AMI is on solid ground as a stand-alone entity. It is capable of funding all of its requirements. Over time we are looking to expand our membership through the mortgage clubs and there are DA firms we are currently in discussions with. The board and I are confident that in 12 month’s time our numbers will be greater.
VH: What do you want to say to brokers today?
RS: AMI has so much to offer its members and we want to make sure we assure value for money. The FSA is earning £15m in fees from the intermediary community and AMI draws fees of less than 2% of that from its members to closely engage with the regulator on their behalf to defend their interests. AMI’s fees are an “extra” sum of money for firms find, but we are here to ensure the regulator doesn’t go too far.
