In response to the costs of regulation being predicted to exceed 20 per cent of income, the answer is simple.
There should be a legal requirement that there is an ‘estimated’ cost of compliance stated on every financial illustration/offer. This is what the FCA calls transparency (definition: ‘something which applies to those we regulate but not ourselves).
If every mortgage offer had a statement saying: “During the life of this mortgage you will pay approximately £5,000 to meet the costs of the FCA’s opulent lifestyle”, then perhaps the FCA would make an effort to reduce those costs or, more likely, be forced to by the subsequent public outrage.
This is a back-door tax on a huge scale, hidden from those who pay it.
Ian Broadbent
Director,
Home Finance,
Scunthorpe
