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£1Bn bill if year’s plans go through

The FSA’s regulatory proposals from the last 12 months would cost the industry over £1bn a year to implement, according to Hargreaves Lansdown.

It has reviewed the cost-benefit analyses included in FSA consultation papers between October 2010 and October this year. It calculates the one-off costs of implementing all the proposals range from £253.2m to £323m. Total ongoing costs range from £1.1bn to £1.4bn.

The costs include the mortgage market review proposals on distribution and disclosure, banning cash rebates to platform cash accounts and data collection and complaints data rules.

Head of pensions research Tom McPhail says: “We recognise the regulator has a difficult line to walk between consumer protection and giving the financial services industry, which plays such a huge role in the economy, room to flourish but we were surprised at the range of one-off and ongoing costs.”

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