But shortly after the TSC session the Financial Conduct Authority (FCA) confirmed to Mortgage Solutions the levy review may not begin until next summer, after the Financial Advice Markets Review (FAMR) had been completed.
Griffith-Jones’ statement that the levy review would begin at the end of this year, beginning of the next, provoked a shock reaction from the Association of Mortgage Intermediaries (AMI) chief executive Robert Sinclair.
Sinclair had previously been told by the FCA policy team that the levy review would be delayed and so was shocked to hear the chairman’s confirmation to the Select Committee it was back on course. The subsequent announcement that next summer is more likely, gave off a confusing message, said Sinclair.
“Given the extremely unfair nature of the life and pensions FSCS levy for investment advice errors being levied on mortgage brokers this delay is exceptionally disappointing,” said Sinclair. AMI is concerned that such a significant delay in a piece of work, flagged in the annual business plan, was not in the sight of the chairman of the FCA. AMI still thinks the need for this review is urgent and should not be delayed.”
The FAMR began on 3 August to examine how financial advice can work better for consumers. Last week a joint consultation was launched by the Treasury and the regulator to ask for feedback on what consumers want from the financial advice markets and where there may be gaps in the advice provided by the financial services sector.
In a statement issued by the regulator it said the findings from the advice review would be relevant to the redesign of the levy which is why it had decided to presented its findings of the FAMR first.
The FCA declined to comment on Griffith-Jones’ statement.