The direct compliance cost to firms of mortgage intermediaries adopting the RDR's 'independent' and 'restricted' labels will cost firms £17m in a one-off charge, the FSA estimates.
The proposals, part of the FSA's latest consultation paper on the Mortgage Market Review (MMR), would see the existing 'whole of market' label replaced with 'independent', while the 'limited' and 'single' labels would be replaced with 'restricted'.
An independent cost-benefit report prepared for the FSA by Oxera estimates the one-off costs of the changes will be £17m, with small firms contributing £14m. The ongoing annual costs are unknown.
The biggest compliance costs would be the £69m annual charge for proposed changes to suitability letters. The regulator proposes suitability letters or product confirmations to be made compulsory.
Elsewhere, proposals to replace the Initial Disclosure Document (IDD) with a more general requirement to disclose 'key' service information early in the sales process will cost £4m annually in compliance costs, Oxera estimates.
This proposal involves replacing the IDD with an element of oral disclosure. The Key Facts Illustration (KFI) will be retained.
The total direct compliance costs to firms of the FSA's proposals are £20m one-off and £74m annually.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created