The FSA admits it is "possible" some of the costs of its professionalism requirements will be passed on to consumers, as it estimates the total one-off charge to advisers of meeting the rules could hit £225m.
The regulator says, typically, 100% of ongoing costs may be passed on, but it says the proportion of initial costs is less certain. It estimates one-off costs to the industry of between £155m and £225m, which is consistent with its earlier forecasts. A number of stakeholders were concerned the figure would be significantly higher. Ongoing, annual costs to the advisory industry could be between £3m and £4m, the FSA says. The regulator is also sticking to its estimate of a cost to advisers of between £3m and £8m for independent verification of their compliance with professional stand...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes