The Financial Conduct Authority (FCA) exclusively revealed to Mortgage Solutions that it was preparing a support package for smaller firms for the July invoicing, but AMI said this should be extended to the 1,100 larger firms under the regulator as they make their “On Account” payments today.
The association has asked the FCA to consider deferring or reducing fees member firms have to pay for the 2020/21 period as the overheads and costs made by larger companies are proportionally the same as their smaller counterparts.
It also said the regulator needed to consider these measures to focus on “maintaining the integrity of the market for the recovery” by helping larger firms protect their financial position.
Robert Sinclair (pictured), chief executive of AMI, said: “Firms are making decisions today to ensure they are here to support the recovery as we come out of lockdown.
“All firms need the same backing and I call on the FCA to reconsider this decision and not penalise larger firms by taking important cash from their bank at this difficult time.
“These firms are planning cash flow to year end and would really benefit from retaining cash in the business. We believe that government should be supporting the costs of our regulators at this time,” he added.