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The guidance issued today (24 June) follows on from AMI’s discussions with the FSA, which clarified that it does not expect firms to recommend lenders or particular products that they cannot access.

Intermediaries have been losing out on business due to the fact that many lenders have chosen to offer more competitive offers by dealing with the customer direct. (See article.)

Chris Cummings, director general of AMI, said: "We have been in negotiation with lenders, lender trade bodies, and regulators during the recent difficult period and we are grateful for this clarification from the FSA.

"Much of our work has necessarily been behind the scenes but members will know it is better for their trade body to be effective than simply to be loud."

AMI also said that lenders' pricing strategy which favours their own branches does not seemed to have worked, as latest figures show that intermediary business actually increased in the year to date.

"Across the market, the differential between branch and intermediary offers has narrowed considerably – and in some cases favours the intermediary again. These may be early indications but they are welcome and we will be monitoring the pricing position day-by-day.

"Our stakes in the ground work will provide an accurate record of recent events, which members can call upon in case of complaints in the years ahead.

"However, firms will need to keep their own client specific records, particularly with regard to advice relating to the unusual market conditions under which they are operating," Cummings added.

AMI will shortly publish a report examining lender pricing activity based on an examination of capital, liquidity, demand flow management and the long term pricing issues in the industry to help its members better evaluate the current financial position.

The full note to members can be accessed via the AMI website.