View more on these topics

Small firms will save £12.9 per year in audit bills

The Department of Trade and Industry will shortly abolish audit requirements for regulated small firms and ARs.

The FSA says the move will save 3,200 smalll firms and 1,490 ARs £12.9m per year.

The DTI will make regulations under the Companies Act 1985 to implement the FSA’s proposal as soon as possible. The aim is that these will apply to financial years ending on or after 31 December 2006, so that affected companies will not be required to have their accounts audited for that or subsequent financial years.

The FSA says the amount of protection for consumers will not be affected as most authorised small firms are subject to the Retail Mediation Activities Return. The capital requirements for firms, which apply on an ongoing basis, will remain unchanged, and any firm holding client money will still be required to have a client money audit.

In September 2005, the DTI amended the Companies Act to exempt small FSA authorised firms and ARs that only undertake mortgage and general insurance business from the audit requirement.

FSA director of small firms Stephen Bland says:

“The FSA is committed to providing a level playing field for all regulated small firms which should promote competition and benefit consumers. We are challenging regulations whose costs outweigh the benefits they bring, and our work with the DTI to extend the audit exemption will bring firms that are limited companies in line with partnerships and sole traders.”


Which? says name and shame TCF firms

Which? is calling on the FSA to name and shame the non-compliant firms in its latest mystery-shopping probe. The results of the regulator’s survey of how 50 adviser firms are adapting to its treating customers fairly regime found that a third of the firms failed to explain risk adequately to the customer. Almost all firms […]

Domestic science

The Cautious Adviser Fund Index is the most diversified of the three AFIs with a broad exposure to all major asset classes. It has reacted less acutely to recent global stockmarket volatility than the Aggressive and Balanced AFIs. While equities are still the panellists’ favoured asset class in the Cautious index, with an overall allocation […]

Tax allowances and exemptions

Helen O’Hagan, Technical Manager at Prudential, looks into the planning strategies that can deliver considerable tax savings for your clients. Inheritance tax (IHT) Consider Margaret, featured on our Planning Matters family hub, who is a sprightly eighty year old with four children and several grandchildren. She’s recently been widowed and IHT planning is high on […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm