The association said it engaged with the regulator directly and was pleased to see firms had 12 months to implement the rules for new and existing products and services.
It said: “Whilst this wasn’t as long as we called for, the FCA has [also] listened to feedback and given firms a total of 24 months implementation for closed products and services.”
The rules were originally set to be put in place by 30 April 2023, but firms now have until 23 July next year. Products and services on closed books have an additional year for changes to be made.
Manufacturers must also complete necessary reviews for existing open products and services, then share relevant information with distributors by the end of April 2023.
This may include changes to high variable mortgage rates and fees, or the description of mortgage products which have the same charging structures as withdrawn limited edition offerings.
It has also been clarified that firms are only responsible for their own actions regarding fair value assessments. This rule requires firms to determine whether products or services are of fair value to customers.
The association also welcomed the use of the word ‘causing’ in cross-cutting rule ‘avoid causing foreseeable harm’. It said the omission of this could have led to firms being liable for harm outside of their responsibility or control.
Robert Sinclair (pictured), chief executive of AMI, said: “AMI played a key role in engaging with the regulator, other industry trade bodies and member firms to ensure the mortgage intermediary voice was heard on one of the biggest regulatory changes the financial services sector has seen within the last decade.
“The implementation timeframes will be tough, with the FCA expecting by end of October 2022 firms will have agreed their implementation plans and how they will oversee delivery of the new rules.”
He added: “It’s therefore important for firms to start work on this now. AMI will help and support member firms to interpret and understand the implications on our sector and plan to work with our lender trade bodies to understand roles and responsibilities, including how we might be able to standardise lender disclosure of product fair value.
“We are generally pleased with the outcome but as always, the devil is in the detail and we are in the process of reviewing the final rules and guidance. Much will depend on how this is supervised and how Financial Ombudsman deals with this new principle. AMI will remain alive to how these develop.”
