The treating customers fairly regime is costing advisers up to £34 per sale, according to a report commissioned by the FSA.
Consulting firm LECG compiled the Regulation of Retail Investment Products report assessing the impact of TCF, the Conduct of Business Sourcebook and supervisory changes on the industry between 2006-2008.
It found average ongoing costs for the period ranged from £3.10 to £34.10 per sale, with advisers’ costs at the higher end of the range and bancassurers’ at the lower end. LECG also estimates one-off TCF costs ranged between £3.50 to £16.54 per sale, with bancassurers at the higher end and IFAs at the lower end.
The report states: “There are some possible benefits to consumers as a result of TCF but it is too soon to draw conclusions.”
Perception Support chief executive Phil Billingham says: “There is little correlation between money spent and the increase in consumer benefit resulting from that spend.
“With the difficult economic climate, it is critical that IFAs in particular get the most possible benefit from any changes to their processes and that TCF does not simply become an excuse to spend money without clear commercial or client benefits.”