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Regulator&#39s consultant says cost analysis is the big chance for IFAs

The FSA&#39s cost-benefit analysis is IFAs&#39 big chance to have an influence on the outcome of the review of polarisation, says the consultancy which compiled CP121.

Charles River Associates principal Tim Wilsdon told the Money Marketing G80 summit the IFA sector should bombard the FSA with details of the cost to their businesses of implementing the defined-payment system.

He referred to his consultancy&#39s involvement in the successful lobbying on the cost analysis that led to the abandonment of CP98, the draft mortgage rulebook that proposed regulation of mortgage brokers by lenders.

Aifa has commissioned CRA to co-ordinate its analysis response and is asking IFAs to assess the cost of implementing the DP system. The consultancy carried out the research on commission bias in CP121 for the FSA.

Wilsdon said: “We still have an opportunity to influence these regulations. CP98 showed that change can be brought about if you can show that the outcome will be poor. Numbers and analysis are very important to this Government and the case for change will only be sound if a solid independent sector will remain.”

Aifa director general Paul Smee said: “The FSA have seriously underestimated the cost and business disruption that the defined-payment system will cause.”


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