Product disclosure rules cost £225m a year

The report reveals disclosure rules cost the mortgage industry an estimated £97.8m each year, the life and pensions sector £54.3m a year and the general insurance and pure protection sector £45.9m a year. The costs arise from supplying product literature, preparing documents, complaints handling and the additional time needed for disclosures. Real Assurance says when it started the work it was expected ongoing costs to the industry of the FSA’s disclosure requirements would be significantly higher than the £600m ‘business to regulator’ costs it identified in a previous report. It sugg...