The figures were included in the FSA’s RDR consultation paper on professional standards, published today.
The cost benefit analysis shows the total costs to advisers will be in the region of £155m to £225m to meet the standards required by the end of 2012 and then £3m to £4m annually.
The FSA has proposed the introduction of statements of professional standing which will confirm that an adviser complies with the new professional standards. It must be verified by an accredited body. Advisers will also incur the costs of obtaining this independent verification.
The FSA says: “Since this market does not exist currently it is difficult to predict the price of this service. Based on information from potential accredited bodies we expect the on-going cost of obtaining an SPS will fall within a range of £60 to £175 per adviser, leading to additional on-going costs to all advisers in the region of £3m to £8m.
“This is likely to be an overestimate for those advisers who belong to professional bodies who already meet the accreditation standards and would therefore not incur additional costs.”
The FSA expects its own costs to be between £4m and £5m initially and £3.5m annually.