Treasury Select Committee chairman Andrew Tyrie has called on individual firms to send him details of how much regulation costs them each year, which the committee will use to challenge further rule-making.
The TSC is conducting an inquiry into the scope and objectives of the Financial Conduct Authority, which will take over regulation of firms from the Financial Services Authority as part of the coalition government's legislative overhaul of the sector.
Speaking at an Association of Private Client Investment Managers and Stockbrokers (APCIMS) conference in London today, Tyrie said politicians and the industry need to create a "counter-balance" to the urge of regulators to create new regulation.
He said one way to do this is for individual firms to document exactly how much regulation costs them, and how that expense is passed onto their clients.
"We [the TSC] need facts. The most basic piece of information is what does regulation cost in compliance, levies, fees, man hours? It is the most basic information needed for a cost benefit analysis and we don't know because you won't tell us," he said.
"You out there in the industry must now put this together for us. This is a once in a generation opportunity."
Once the industry has created a methodology for collecting the details of how much regulation costs it, MPs can explain to consumers what it costs them, he said.
"Because in the end the consumer pays. The consumer always pays," he said.
Sam Caunt, partner at Northampton-based IFA Kingston PTM, has calculated that at least £20 of his company's average £150 per hour rate is due to FSA regulation and to plan for and cost in the RDR and capital adequacy proposals.
Dennis Hall, principal at Yellowtail Financial Planning, has said he the Money Advice Service will cost his clients about £10 a year each to "educate everyone else".
Tyrie warned the industry not to "come bleating" to him in a few years time if it does not like the future shape of regulation.
"I won't be interested," he said. "We need you to put your head above the parapet now."
The TSC's consultation formally closed yesterday. However Tyrie said firms could still make submissions.
"Please just get on with it and get it in. We have it as a very high priority," he said.
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