This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+cover+small+241014
Categories:Regulation

Life offices and fund firms face big rises

  • Print
  • Comment

Insurers and fund firms are among the businesses bearing the brunt of the FSA’s 16 per cent increase in annual costs for 2012/13.

Life insurers are facing a 37 per cent increase in their FSA fees, from £44.5m to £61.1m. General insurers face a steep increase in fees, which are set to rise 36 per cent from £29.4m to £40.1m.

Fund firms are expected to be hit with a 32 per cent fee rise, from £28.2m to £37.3m.

Association of British Insurers director general Otto Thoresen says insurers are already facing increasing costs related to the RDR, Solvency II, gender-neutral pricing and auto-enrolment.

He says: “We knew there would be a cost involved in moving to twin peaks’ regulation but in this difficult financial environment, all organisations need to be focused on controlling their costs. While insurers will do their best to absorb these costs, some will inevitably be passed on to small companies and private individuals at a time when they can least afford it.”

Investment Management Association director of wholesale Guy Sears says: “The 32 per cent increase for asset managers is most unwelcome.

Last year fund managers had to stump up £233m for the defaults of others and this year they may be required to cross-subsidise again. In that light, it is unclear if the FSA has its priorities right.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Should Sesame unwind the 'pay to play' deals it set up as part of its restricted advice panel?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments