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RDR CP: FSA estimates £430m compliance cost of RDR

The FSA estimates that incremental compliance costs relating to the implementation of the retail distribution review will be £430m as a one-off cost and £40m a year.

In its consultation paper released today, the FSA has estimated that the direct cost of implementing the RDR will be £2m one-off and £1.2m annually.

It says there may also be short-term costs arising from market exits by advisers and increases in product prices.

In a separate paper also released today, research by Deloitte for the FSA found that directly authorised firms expected the one-off costs of compliance per adviser to be £4,567. Annual ongoing costs of compliance per adviser were estimated to be £3,321.


Principle buoy

Ethical funds have always inspired debate in the financial industry, with opinion divided or whether they can stand up on investment as well as moral terms.


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