RDR: GPP commission ban to cost IFAs up to £420,000

In the FSA's latest cost-benefit analysis, feedback from IFAs suggested the implementation of the ‘consultancy charging' model for GPP advice could cost anywhere between £8,000 and almost £0.5m for individual firms. The lowest estimate for one-off costs facing advisers was £8,000, with the average firm facing around £50,000 in total costs. However, for very large firms specialising in GPPs, costs could rise to more than £400,000. Major costs include upgrading IT systems, which could cost from £2,000 to £40,000 for individual firms, depending on whether they use proprietary or custom ...