Turner says SEP fee increases are a "one-off"
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Speaking at the FSA's annual public meeting, Turner said: "The Supervisory Enhancement Program involves investment, which means higher cost, which means higher fees.
"The executive and the Board of the FSA are very focused on ensuring that, after a one off increase in costs to achieve this investment, the industry will not face relentless rises in future.
"But we cannot avoid the one off increase: in the past, in relation to our highest impact firms, we were trying to do supervision on the cheap."
Turner also played down the importance of whether the FSA or the Bank of England should hold responsibility for the supervision of banks, saying it was not as important to the future stability of the financial system as other decisions.
He said: "And the effort which the FSA and the Bank of England will devote alongside each other over the next year or two, during which the vital international decisions are made and become fixed, will I believe be far more important to the future soundness of our financial system, than any debate about what the future division of responsibility between us should be."
Later Turner referenced the Conservatives white paper released on Monday which suggested the FSA should be scrapped in favour of a Consumer Protection Agency.
Turner said the Tories and the Government have a similar view on the really important substantive issues such as capital and liquidity regulation.
But he said their thinking on the organisational structure of the Bank and the FSA was "very different" and said there were pros and cons to different models.
He said: "The key challenge is not to decide which model to have, but to make whatever is the chosen model work effectively."
Chief executive Hector Sants also played down the importance of the future organisational structure of the FSA in his speech at the AGM.
He said: "In particular I hope that regardless of any changes to the high-level regulatory architecture in the UK that the culture, the people, and the operating model that we have created here at the FSA will continue to provide the effective supervision that society requires."
Readers' comments (6)
Julian Stevens | 23 Jul 2009 12:49 pm
Turner says FSA fee increases are a "one-off"
"Regulation on the cheap"? "the FSA will continue to provide the effective supervision that society requires"? These people are obviously living in cloud cuckoo land.
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Warwick Tidy | 23 Jul 2009 1:08 pm
Pigs to fly.
All pigs are refuelled and ready to fly.
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Anonymous | 23 Jul 2009 1:13 pm
Turner says FSA fee increases are a 'one-off'
Call me cynical but Is this because the FSA senior heirarchy are expecting to need to fund large bonusesfor their successes on their departure to various bank boardrooms after the election?
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John Delve | 23 Jul 2009 1:28 pm
FSA Fee Increases
Just like the MP,s they are lining their own pockets and using our money for their lavish hotel expences. They were frightened of the banks and spent all their time enforcing rules on the IFA sector which are seen by all, including the public to be OTT. My worry is can we ever get a replacement body that we can trust to 'treat us fairly'!! and work within strict budgets as we all have to do.
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Julian Stevens | 23 Jul 2009 4:38 pm
Turner says SEP fee increases are a "one-off"
Says Lord Turner "He said: "The key challenge is not to decide which model to have, but to make whatever is the chosen model work effectively." So, what he appears to be saying is that the industry could be saddled with entirely the wrong regulatory model (as indeed we are) but provided it works effectively ~ by whose criteria, we know not ~ then that's okay. Not that the present regulatory model does work effectively, but hey, nobody's perfect, even after 20 years of trying. By the same line of reasoning, IFA's might well say to the FSA "Yes, I know my business model doesn't conform with what you people (who've never been IFA's or run your own business) think it should, but it works effectively, so what are you bitching about? Would that be acceptable?
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derek timothyy | 24 Jul 2009 1:15 pm
Turner says SEP fee increases are a "one-off
i feel so much better now that he has said this, i was so worried that we were all being taken advantage off by the bansk and fsa execs and the bonuses etc... now i can poodle on with my little ifa practice happy in the knowledge that mr lord turner is looking after us....sic!
maybe next year we will get a refund!? happy days!
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