View more on these topics

Life offices and fund firms face big rises

Insurers and fund firms are among the businesses bearing the brunt of the FSA’s 16 per cent increase in annual costs for 2012/13.

Life insurers are facing a 37 per cent increase in their FSA fees, from £44.5m to £61.1m. General insurers face a steep increase in fees, which are set to rise 36 per cent from £29.4m to £40.1m.

Fund firms are expected to be hit with a 32 per cent fee rise, from £28.2m to £37.3m.

Association of British Insurers director general Otto Thoresen says insurers are already facing increasing costs related to the RDR, Solvency II, gender-neutral pricing and auto-enrolment.

He says: “We knew there would be a cost involved in moving to twin peaks’ regulation but in this difficult financial environment, all organisations need to be focused on controlling their costs. While insurers will do their best to absorb these costs, some will inevitably be passed on to small companies and private individuals at a time when they can least afford it.”

Investment Management Association director of wholesale Guy Sears says: “The 32 per cent increase for asset managers is most unwelcome.

Last year fund managers had to stump up £233m for the defaults of others and this year they may be required to cross-subsidise again. In that light, it is unclear if the FSA has its priorities right.”

Recommended

Principality lending hits £1bn but profits fall

Principality Building Society lent £1bn to mortgage customers in 2011, up by 6.5 per cent on £934m in 2010, although profits fell sharply. In its annual results for 2011, published last week, the society says profits fell by 20.5 per cent from £30.8m to £24.5m. Its core tier-one capital ratio increased from 13.3 per cent […]

Barclays pre-tax profits fall 3%

Barclays Group reported a 3 per cent fall in pre-tax profits in the year to December 31 to £5.9bn, down from £6.1bn in 2010. The bank’s bonus pool has fallen 25 per cent to £2.15bn, with individual cash bonuses capped at £65,000. Barclays says the investment banking division’s bonus pot has fallen 32 per cent […]

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment