RegulationJun 2 2015

Richards calls for review of regulation costs

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Richards calls for review of regulation costs

The PFS has hit out at the constantly rising cost of regulation.

Chief executive Keith Richards called for a review of the way regulatory costs are allocated across the industry.

The FCA has announced a fee increase of almost 6 per cent which, combined with the increasing FSCS levy, means advisers will see overall fees rise by 10 per cent.

Mr Richards said: “Regulation is a key component of providing protection and influencing good outcomes for the general public but it is becoming increasingly unreasonable to continue with an outdated funding system that levies unfairly against a smaller number of contributors in a totally different post-RDR landscape.

“Regulatory fines were originally intended to influence behaviors and ultimately help fund regulation.

“They should also be providing a dividend for the most compliant,who should pay the least.

“Instead, all fines now go to the Treasury and the increased cost burden is being shared by a reducing pool of advisers.”

Earlier this year Lord Deben, chairman of Apfa, wrote to the FCA criticising its inability to abide by “basic standards of budgetary management”.

He said the FCA’s inability to live within a level budget raised questions about its competence.

A spokesman for the FCA said: “We are always conscious of the cost of regulation, which is why we work to ensure our requirements are proportionate.”

She added that the FCA consults on its fees every year.