NACFB: FSCS Levy is an expensive route to welcome destination

NACFB: FSCS Levy is an expensive route to welcome destination


Todays other news
The improved mood follows the latest Bank of England rate...
Four in five UK self-employed entrepreneurs have struggled to get...
The cost of home insurance in the UK increased by...
The lender has claimed to move away from the 'them...
L&G Mortgage Club has launched an end-to-end digital mortgage solution...


The £15 million supplementary levy imposed on mortgage brokers by the Financial Services Compensation Scheme (FSCS) will hit the best-qualified brokers hardest, according to the National Association of Commercial Finance Brokers (NACFB).

The organisation’s chief executive, Rob Lankey, says the levy is welcome as it protects borrowers.

However, he stresses that NACFB members have already been investing their own money into compliance, through dedicated schemes, training and education.

“This laudable work means there is less spare money to spend on the FSCS levy, so this supplementary levy hits the best-qualified brokers hardest of all,” says Lankey.

One fifth of NACFB members – 170 firms – carry out residential mortgage business, but only a small proportion of those offer any investment advice and far fewer offer any kind of unregulated investment scheme of the sort that has led to the imposition of the levy.

 

“We note that the FSCS does not expect this level of costs to continue into future years,” Lankey adds. 

“Unfortunately measures of this sort do not send out the right message, whether or not each payment taken is large enough to do financial damage to the broker.”

He says that it seems unreasonable to target the ‘good guys’ when the levy has been introduced due to the majority of claims being made against one unspecified broker.

“This is particularly unreasonable when the activities concerned related to unregulated overseas investments not to failings in the mortgage advice activities for which mortgage brokers pay their regulatory dues,” Lankey says. 

The NACFB says it would prefer to see a more equitable approach ‘that recognises the work brokers are already putting in every day to raise the standards of the industry’.

 

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Introducer Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
The improved mood follows the latest Bank of England rate...
Four in five UK self-employed entrepreneurs have struggled to get...
The lender has claimed to move away from the 'them...
In the past four years 50% of buyers have been...
A prominent agency expects anxious buyers to keep searching...
The warning comes in the latest market snapshot from Rightmove...
Recommended for you
Latest Features
The improved mood follows the latest Bank of England rate...
Four in five UK self-employed entrepreneurs have struggled to get...
The cost of home insurance in the UK increased by...
Sponsored Content
Historically second charge mortgages or secured loans as they are...
Lenders must say what they mean and mean what they...
Fraudsters attacking the conveyancing sector, successfully stealing large sums of...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here