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Consultants costing regulator £1m for work on the RDR

The FSA has paid almost £1m to external consultants for work related to the RDR.

The regulator has made 11 payments totaling £986,819 since 2007, according to a Freedom of Information request.

The payments include a £277,916 single payment to market research agency BMRB in 2010 and a £134,660 payment to Deloitte the previous year.

London research agency IFF Research received two payments, including £58,574 for work ordered in November 2007 and £75,110 for work in early 2009.

Highclere Financial Services partner Alan Lakey says: “This is industry money and the FSA thinks it can spend whatever it likes because it can simply charge the industry higher fees next year.”

The FSA said in a previous FoI disclosure, revealed by Money Marketing in August, that it had spent £2.95m so far on developing the RDR.

An FSA spokeswoman says: “The period 2007-10 has been an intensive period of RDR discussion, consultation and policy development. The research provided an evidence base on which to develop the proposals put forward by industry working groups.”

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Comments

There are 7 comments at the moment, we would love to hear your opinion too.

  1. its sickening how these people fee its OK to spend our money!

  2. It’s a great pity that the FSA are not subject to the Audit Commission (formerly District Audit Service), with the power to surcharge wastes of money on those responsible!

  3. Small beer in the context of the FSA’s overall yearly piss-away budget earmarked for its friends in the City.

  4. s.mansell@templebar.co.uk 13th January 2011 at 2:55 pm

    Of course RDR is estimated to cost £1.7b and now we learn the FSA pays consultants £1m for RDR research funded by the very IFA’s they want to cull, and to make matters worse all they can come up with is an obscure Australian survey based on a total of three firms! Hector your research is as upside down as your RDR proposals.

    Cor blimey strewth cobbers what a lot of overpaid drongos!

  5. I’d like to find out how much this consultation paper cost the FSA in 2008, which specifically relates to the quality of advice & adviser qualifications? These consultants freely admit their data was flawed. At least ask for a report where the data is going to be not flawed?!!!

    “Surprisingly, we find no relationship between the share of advisers who passed the qualification exam or the share of competent advisers and either the amount or the incidence of consumer loss attributable to the PIF. None of these variables is statistically significant in any of our estimations. This implies that we cannot find a relationship between adviser competence and consumer loss, though given the data limitations this can in no way be construed as conclusive evidence that such a relationship does not exist – – rather, it should be interpreted as indicative of the weakness of our data .” – Firm-level Predictors of Consumer Loss Through Poor Financial Advice Independent research for the FSA by Europe Economics – 29 April 2008

    This can be found at http://www.fsa.gov.uk/pubs/other/report_predictors.pdf

  6. And that was just for the biscuits!

  7. At that price clearly I should be providing my services to the FSA and not IFAs.

    None of you told me so maybe I should take you all to FOS!

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