In yesterday’s FSA consultation paper, Regulatory Fees and Levies for 2009/10, the regulator states that most of the increase will be passed on to deposit-takers and other high impact firms.
However, the IMA highlights that the fund management industry also faces a rise of 7.9 per cent and suggests the impact for large firms could be far greater than this given the fact that funds under management are down.
It acknowledges the importance of maintaining a strong regulatory regime but says these costs will be borne by investors, pension schemes and funds and are another tax on saving in a very difficult year.
IMA director of wholesale Guy Sears says: “While there will clearly be a need to reassess the resources devoted to banking supervision, it is unclear to us why the fund management industry is facing such an increase. These extra costs come at a time where funds under management are down and where it is ever easier to relocate fund management away from the UK.”