Those watching the recent FA Cup semi-finals will know what a terrible state the Wembley pitch is in. In the short term the pitch needs relaying but, longer term, there needs to be a complete review of the playing surface.
The same can be said for the way the FSA is funded. We have had regular consultations on fee levels but we need an overhaul of the entire system. That is why we commissioned an independent firm of financial experts, RGL Forensics, to review the funding formula.
The result lays open how the intermediary sector is being unfairly penalised by the regulator. RGL has recommended a fundamental overhaul of the way FSA costs are allocated. Just reallocating the indirect costs, based on the revenue of firms, and not reviewing the entire fee block system, would reduce the bill for intermediary firms immediately from £70m to around £25m. This could be implemented swiftly. Longer term we need a complete review of the entire system.
The IFA profession did not cause the banking crisis. It was not our actions that resulted in the widespread chaos in the markets and it is not the IFA sector that now requires more stringent regulatory supervision.
We believe the FSA should be appropriately funded for the work it must undertake to protect consumers but it should focus its attentions on
organisations that present greatest risk and reduce the regulatory burden on the IFA profession . All we are asking for is a level playing field.
We have presented these findings to the regulator and will be holding discussions in the coming weeks to try to deliver a more economically sound and fairer outcome.