Wrap providers face £60m cost of compliance fees
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The industry will be hit with £127m of one-off compliance costs as a result of the FSA’s latest platform proposals.
The regulator says platform operators can expect to be charged £60.2m in one-off costs to meet the new proposals and other intermediate unitholders will have to pay the same amount. Fund managers will be hit with a £6.6m charge.
Platform operators can also expect to pay £25.3m in ongoing costs, intermediate unitholders can expect to pay £21.2m and fund managers £1.1m.
The FSA says around £70m of the one-off costs and £34m of the ongoing costs are attributable to the proposals on the provision of information to fund managers and underlying investors.
One-off costs of £26m and £9m ongoing are due to the ban on cash rebates to consumers.
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