The FSA should levy regulatory fees on IFA firms depending on how many advisers sit within them as opposed to how much income is generated according to Aifa.
In its response to the regulator's consultation on fees and fees policy, the trade body says whichever way fees are levied, the same amount of money will be generated.
It says its member firms prefer the per RI approach as it is simpler to administrate. The FSA would have an easier time of it as well, says Aifa, as keeping track of numbers of RIs is an easier task than the other method.
The response says: “An income-based tariff is also likely to have the perverse effect of penalising efficient firms, which in many cases have invested in quality back office support and compliance staff or systems.
“It is more than likely that this investment is the reason why these firms generate higher income per capita. It could be argued that firms with tighter controls require less regulatory attention.”