RDR Policy: Adviser charging costs up from 'negligible' to £60m

Overall, RDR will cost intermediary firms three times as much as the FSA originally estimated, today's policy statement reveals. In June, total ongoing costs were estimated to be £40m for intermediary firms, but the FSA now believes RDR will cost advisers between £100m and £120m. The biggest cost increase is for the implementation of adviser charging. Last year, the FSA said adviser charging would carry ‘negligible' ongoing costs, but now believes firms will need to invest up to £60m a year. One-off adviser charging costs have also been significantly revised. Initial estimates pu...