May I make some points on the FSA fee rise:1: The rise is inflationary – 10 per cent is outrageous.2. The rationale is that costs go up as regulation gets less prescriptive. If it is less prescriptive, costs should fall.3. The FSA aims to have fewer employees but still feels it needs more money. This is to pay higher salaries. Bonuses are already paid and are due to be increased. How does it determine what merits a bonus? More paperwork generated? More fines levied? More talk and discussion papers and initiatives or changes? Come on!4: All the above are necessary to deliver the FSA’s statutory objective. If there is a statutory objective, should not that be paid out of general taxation? What next, a collection box for our local bobby? Civil servants are paid for by the Government. Sure, we had to pay under self-regulation but that is no longer the case.
Arguably, the greatest benefit is to the public, not those who work in financial services although I do admit there are some advantages for us, too. The case for public funding seems conclusive.