FCA fees remain broadly level for mortgage intermediaries, but the update does allow for year-on-year savings in terms of total cost for those firms with consistent turnover.

This is due, in the main, to a reduction in the levies paid by mortgage intermediary firms towards the Financial Services Compensation Scheme (FSCS).

Robert Sinclair (pictured), chief executive of AMI, said: “AMI welcomes the reduction in FSCS fee costs for firms in the midst of this pandemic and at a time when capital resources are more challenging for firms.

“We regret that firms with invoices over £10,000 will have to pay within 30 days, but are supportive that smaller firms will have 90 days to pay.

“Whilst delighted that firms will not see a real increase in their total fees and levies costs this year, we remain acutely aware of the challenges faced by firms and the interrelation between capital adequacy requirements, [professional indemnity insurance (PII)], [Financial Ombudsman Service (FOS)] and the FSCS costs.

“I was heartened to hear [FCA chair] Charles Randell’s statement that they needed to redesign the system to ensure that polluting firms in the financial sector pay, not those who have behaved well.

“AMI will continue to work to hold the FCA to account and ensure that intermediary fees are proportionate to the risks posed.”