Regulatory fees paid to cover the costs of running the Financial Services Authority are set to drop an average of 1% for authorised firms over the 2004/5 year the organisation reports today in its annual review.
This is because the projected Annual Funding Requirement (AFR) is decreasing marginally to £213.3m from £214m the previous year.
The regulator warns the average reduction in fees may not apply to all firms, because it will depend on the sort of business for which they are regulated.
A portion of the AFR outlined in the report will go to covering the cost of employing a chief executive.
John Tiner’s salary in the 2003/4 year was £310,971, not including a performance-related bonus of £52,000 or other “emoluments and benefits” worth £108,685, of which £47,741 was in the form of funding of a personal pension.
This year, Tiner’s salary starts at £365,000.
Recognising some of the criticism of the way the regulator turns policy into concrete action, Tiner has restated his intention to half the number of consultation paper in the current year – 2004/5 – and follow the target dates published in January, outlining when specific papers are due.
Additionally, he says the FSA is working on making the Handbook more “accessible”, by, for example, looking at how IT could be used to enable firms to make copies of the book more relevant to the particular businesses they are authorised to carry on.
The Handbook figures prominently in criticism published by the FSA’s own Small Business Practitioner Panel, which says in its 2003/4 annual report that there is an ongoing need to make the book more user-friendly.
The SBPP also says it remains concerned new rules continue to have a disproportionate or disadvantageous impact on smaller regulated firms.
The Consumer Panel notes in its annual report published in mid-June that while the FSA has taken good steps towards improving consumer understanding of financial services, it remains concerned that any consumer protection is removed before attempts to educate consumers bear fruit – which could take years.IFAonline
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