FSA fees 'unlikely' to rise in 2009

Mortgage intermediaries are unlikely to see their annual fees increase, following the release of the FSA's consultation paper on regulatory fees and levies for the coming year.

The regulator published its annual paper outlining fee policy proposals for 2009/2010, which seems to suggest that mortgage intermediaries will not be affected by any proposed changes, news that will be positively received by the sector.

Robert Sinclair, director of the Association of Mortgage Intermediaries (AMI), said it did not see any effect on brokers in its initial analysis of the paper. He commented: "Our view is that this affects on larger financial organisations and lenders in particular. Explanatory guidance is being provided, to ensure accurate reporting."

Responding to the possibility of lenders' seeing a fee hike, Bernard Clarke, communications manager at the Council of Mortgage Lenders (CML), said: "It is important that any planned regulatory response from the FSA and costs of the response remain proportionate. The cost will ultimately be born by consumers. It is important that the new regulatory measures are cost effective."

Earlier in the year, intermediaries had been warned that the FSA would move to regulate individual brokers, after it refused to rule out making brokers subject to its Approved Persons regime. With Chancellor Alistair Darling also pledging to beef up the regulator's powers, industry figures feared a hike in intermediary levies as a result.

However, changes to the Financial Ombudsman Service (FOS) levy calculations for 2008/09 could still affect mortgage intermediaries. The FSA said an increase in the proportion of the FOS's case load is expected to involve mortgage and banking complaints which will affect fees.