The ABI is looking to raise £11.4m from members over the next three years to pay for its quality mar...
The ABI is looking to raise £11.4m from members over the next three years to pay for its quality mark accreditation system. The trade body is already in the process of spending £6m in its initial phase, a sum raised from sponsor members of SALTR.
Companies will have to pay for ABI accreditation and these fees will provide the budget for the project. The initial sponsors, which include Standard Life and Scottish Equitable, will be eligible for a rebate of up to £3m of the £6m over the next three years. Assuming the initial sponsors take the full 50% rebate the annual cost of the project is to be £3.8m annually for the first three years after which it will be reduced to £2.805m pa.
Operating costs for the accreditation project are estimated by the ABI to be £1.185m this year and £1.805 annually hereafter.
In addition the trade body intends to spend £500,000 on marketing the quality mark concept during 2000 and forecasts spending £1m annually on this in future years. All the forecast costs exclude inflation.
Based on these estimates the ABI believe the cost per company per year would be approximately £80,000 to £90,000.
The association anticipates the money will be raised through income derived from accreditation fees, renewal fees, an annual subscription to cover the marketing costs and a small voluntary levy.
In its financial model assumptions, the ABI has assumed that 60 brands will become accredited and renewals will take place every three years. The project will involve 20 paid members of staff with average salaries of £30,000.
These figures do not take into account the costs individual companies will have to incur in order to meet the accreditation requirements.
Based on ONS data
Claim from SocGen's global markets division
Third annual Hampton-Alexander review
European Commission yields to pressure