The FSA says it has “no plans” to help firms accurately disclose to consumers how much regulation costs under the Financial Conduct Authority.
The regulator held a series of regional events for firms in June and July to discuss the transition to the FCA early next year. Last week, the FSA published a frequently asked questions document about the new regulatory structure.
One question in the document asks: “Because clients and customers ultimately pay the costs of regulation, can you give some indication of regulatory cost or help firms disclose accurately how much regulation costs?”
In its response, the FSA says: “We have no plans to do this. We will set out clearly in our annual funding consultation and business plan how we plan to use the fees we collect from firms to fund our work, and what work we will do. We will then assess our performance against this in the following year’s annual report.”
The regulator adds the National Audit Office will also carry out an independent review on whether the FCA provides value for money in the way it regulates firms.
The FSA says the basis for setting regulatory fees will initially continue, but this will be assessed over the first year of the FCA’s operation. The industry will be consulted over any proposed changes to fees.
The regulator says “it is impossible to say at this stage” whether fees will go up under the FCA.
Plan Money director Peter Chadborn says: “In the interests of transparency firms should know how much the regulator is receiving from different industry sectors, how this is spent, and the impact on consumers in charges.”