NACFB: 15m pound FSCS levy ‘hits the best-qualified brokers hardest

NACFB: £15m FSCS levy 'hits the best-qualified brokers hardest'




The £15m supplementary levy imposed on mortgage brokers will hit the best-qualified brokers hardest, according to the National Association of Commercial Finance Brokers (NACFB).

While one-fifth of the NACFB’s members are involved in the residential mortgage market, only a small proportion of those offer investment advice.

Even less offer any kind of unregulated investment scheme of the sort that has led to the levy being imposed by the Financial Services Compensation Scheme (FSCS).

Rob Lankey, CEO of the NACFB, said that the NACFB would prefer a fairer approach that recognised the efforts made by its broker members to raise the standards of the industry.

“Of course we welcome any move that protects borrowers.

“The steps we’ve taken to embrace regulation have not been cost-free and our members are investing their own money into compliance, both through dedicated compliance schemes and in 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.

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

“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.

“Given that one unspecified firm is reportedly responsible for the majority of the claims that led to the £15m levy, it seems unreasonable to target the good guys to cover the costs incurred by their less reputable rivals.

“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.”

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