RegulationJan 22 2013

New Mas funding model cuts adviser levy by 93%

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Karen Broughton, marketing and service delivery director for Mas, said a consultation launched today (22 January) on the way the service is funded means IFAs would pay 93.5 per cent less.

However, home finance providers such as mortgage advisers could pay more.

The FSA is proposing that Mas would be funded based on demand for its service.

Ms Broughton said: “The current system was initially set up for a year so we are slightly late in revisiting it.

“This set of proposals complements our proposed business plan.

“At the moment the way fees are collected for Mas are part calculated in FSA costs. It does not reflect demand for our service

“We are proposing a revision to the formula so that each area pays in line with customer demands.”

She denied that criticism of the service was a trigger, adding: “The FSA has previously indicated it would look at our fee structure. We want to find a more logical evidence-based approach to funding”.