The melting-down and recasting of the FSA to form two new regulatory bodies will cost £12.3m between 2010 and 2012, it was revealed today.
In a CEO letter, FSA chief executive Hector Sants today outlined further details on how the transition to the Prudential Regulation Authority (PRA) and the Consumer Protection and Markets Authority (CPMA) will work.
He writes while the regulator has already begun consulting on its costs for the project in its 2011/12 budget, it now expects to spend a £1.4m on the transition from 'existing funds'.
This means the FSA's estimate has climbed from £10.9m, as outlined in the budget, to £12.3m before 2012.
Meanwhile, Sants explains the regulator will have to "reprioritise" its work-plan to "ensure due regard" to its need to focus on the transition.
"This will mainly be achieved by reducing some of our routine supervisory activity," he writes.
"Throughout this process, firms affected by these changes will be kept informed by their supervisors."
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