View more on these topics

£200M loans for regulator

The FSA has had to tap into £200m worth of credit facilities with Lloyds and HSBC to cover a funding deficit for 2008/09.

This is the first time the FSA has made use of the £100m credit agreement it has with Lloyds which was set up before to the credit crunch.

The regulator has also secured an extra line of credit for £100m from HSBC.

The FSA spent £347m in 2008/09 but raised only £324m in fees and other revenue.

Reports suggest that the FSA has already agreed a fur- ther loan from Lloyds to fin- ance its expected deficit for the forthcoming year but the FSA would not comment on any future borrowing.

The regulator chose to borrow from commercial banks rather than from the Bank of England or the Treasury.

A spokesman says the regu- lator had to borrow the money to pay for its new supervisory enhancement programme, which is being funded through this year’s fees. He says: “The loan will be used to finance the cost of the SEP until we collect fees in full. We will pay back the loan when we are in a position to do so, we do not have a timescale on that yet.”

Last week, Money Marketing revealed that the FSA is owed £900,000 in outstanding fees by 1,692 regulated firms. The FSA says this includes firms that are in dispute over fees.

Baronworth Investment Services director Colin Jackson says he is concerned that regulated firms will have to foot the bill for the loans. He says: “If we have a change of Government and the FSA is disbanded, will we have to pay for these loans?”

Recommended

1

Consolidator’s consideration

Perspective Financial Group managing director Damian Keeling explains what consolidators look for in IFA businesses

Johnson Fleming is a finalist at UK Pensions Awards 2016

The UK Pensions Awards shine the light on excellence and recognise the advisers, providers and investment managers that offer the highest level of innovation, performance and service to occupational pension schemes and their members. This year’s awards looked at advisers and providers across 31 different categories and were rigorously judged by a panel of senior […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com