RDR labels read-across to mortgages to cost firms £17m

Scott Sinclair
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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 lette...

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