AIFA demands IFA fee cuts this year

Scott Sinclair
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A new way of calculating IFAs' share of the FSA's annual fees which would see intermediary firms pay a third of current estimates in 2010/11 has been put to the regulator by the Association of IFAs (AIFA).

In its response to the FSA's fees consultation published in February, AIFA has proposed a radical overhaul of FSA funding. Based on the findings of economic group RGL Forensics, AIFA is proposing both a long-term solution for the allocation of the regulator's costs each year and a "stop-gap" suggestion it says is "achievable" before the fee levels are set for 2010/11. Under the second, short-term proposal, with the cost allocation based on firms' profitability, the bill for intermediary firms would be cut immediately from £70m to between £22.7m and £24.6m this year. Under its longe...

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