View more on these topics

Small firms calling on FSA to consider affordability of levies

The Smaller Businesses Practitioner Panel has called on the FSA to consider the impact of Financial Services Compensation Scheme levies on the viability of firms.

Speaking at the FSA’s annual public meeting in London this week, panel chairman Guy Matthews said the past few years had seen a dramatic increase in FSCS levies for firms, which he says is set to continue.

He said: “We think regulators should be charged to look at the impact of the FSCS levy on the viability of firms. We also feel now would seem the most appropriate time to question whether such a self-insurance system is affordable or fit for purpose in its current form.

“In most cases the well-run compliant companies are the ones that are penalised and have to finance the compensation payments to clients of erring firms. We have emphasised to the FSA that the burden of costs of all compliance and regulatory requirements can place a disproportionate burden on senior management of smaller firms.”

He added much of smaller firms’ time and resources need to be devoted to regulatory and compliance issues, which is not in clients’ best interests.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 5th July 2012 at 9:45 pm

    Given:-

    1. Hector Sants’ claim to the TSC that the FSA has no prejudicial agenda against small IFA firms and

    2. Neil Dhot’s statement in his letter to my MP that the FSA observes fully the provisions of the Statutory Code of Practice For Regulators in all its policy making activities,

    we can be confident that it [the FSA] will take on board this plea and act accordingly. After all, in the foreward to the Code, Pat McFadden (now a member of the TSC) wrote:-

    Our expectation is that as regulators integrate the Code’s standards into their regulatory culture and processes, they will become more efficient and effective in their work. They will be able to use their resources in a way that gets the most value out of the effort that they make, whilst delivering significant benefits to low risk and compliant businesses through better-focused inspection activity, increased use of advice for businesses, and lower compliance costs.

    No worries then. The FSA knows exactly what’s expected of it and will act accordingly.

  2. Larry in London 6th July 2012 at 5:39 pm

    I just saw a snowball roll down the High Street in July. It did this all by itself and without any help from anyone. Amazing.

    Love and kisses

    Larry

Leave a comment