The FCA says its ‘value for money’ strategy’ covers all its activity and has been agreed and endorsed by the board. What about looking at whether the RDR has been value for money?
A cost benefit analysis is not mentioned and, really, that is what we all want to know - and what I thought had been promised to the Treasury Select Committee. Some £3bn is often touted as the RDR cost and we need to see a true total and the benefits such vast cost has achieved.
4) Your fees are coming down
While the FCA has proposed a higher budget of £452m for 2014/2015, with higher fees of £403m to be collected, financial advisers are actually set to see almost a 20 per cent reduction in the next financial year’s fees and levies.
Most adviser firms will now fall under the fee-block A13, the FCA confirmed, following the removal of the A12 block and move of all advisers, arrangers, dealers and brokers, regardless of whether they are holding client money, assets or both, into A13.
Those in the A13 fee-block will see a 18.7 per cent drop in the fees and levies payable in the next 2014 to 2015 financial year to £68m from the current £83.6m.
5) More focus on whistleblowing
The FCA wants to promote a culture where people are prepared to speak up about wrongdoing within a firm, as it is then the FCA can investigate an issue that may only emerge once wrongdoing has been committed.
In 2013, there was a 65 per cent increase in the number of actionable pieces of intelligence we received from whistleblowers.
In 2014/15, the FCA said it we will consider whistleblowing trends and identify under-represented sectors where we can direct an outreach programme to encourage whistleblowers to come forward.