Match fees to risk profile, says Strange
Share
Aifa is calling for the FSA to introduce risk profiling into its calculation of firms’ regulatory fees.
Fees are based on the number of approved persons within a firm. The FSA says it will consult on changing it to firms’ income.
But Aifa policy director Andrew Strange says: “We should be talking about risk-profiling firms so good firms that invest heavily in the qualifications of their staff and have good systems and controls pay less in fees.”
He questions the FSA’s plan to cut costs for firms offering more than one area of business. “If you are a small IFA that does not hold mortgage permissions, this new structure would allow you to apply for mortgage permissions and do up to £99,000-worth of mortgage business without any further charge. From a risk perspective, how does a firm picking up an additional permission require no further regulation?”
An FSA spokesman says: “The most efficient, effective and objective way to calculate fees for IFAs is on the basis of size.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (1)
Anonymous | 27 Nov 2009 9:54 pm
Strange train of thought..
The FSA is attempting the application of logic, what is wrong with that?
Why attack in public? Why not try something unusual? Proper engagement for example..
This is ineffective and probably counter productive.
Unsuitable or offensive? Report this comment