MAS' new debt advice remit doubles costs to £87m

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The financial services industry will pay an extra £40m toward the Money Advice Service (MAS) after it agreed to take on responsibility for coordinating and providing debt advice.

The total estimated cost of running the MAS in 2012/13 will be £86.8m, comprising the £46.3m cost of continuing with its existing services and the extra £40.5m cost of providing debt advice. Most of the levy will be met by the government and secured lenders, the FSA said, with unsecured lenders and other businesses, including advisory firms, contributing the remainder. Firms in the A13 fee block - made up mostly of adviser businesses which do not hold client money - will pay £153.88 per adviser, down from the current £160.79. The MAS' new debt advice remit was signalled by the gove...

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