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Wall of silence on RDR cost

THE EDITOR’S LETTER OF THE WEEK

I am amazed at the silence with which the industry has reacted to the announcement that RDR industry costs had multiplied (not just increased by, say, 5 or 10 per cent, which would have been bad enough) but by a factor of three to five times, if I remember correctly. An extra 300 to 500 per cent and a wall of silence.

I make no comment here about the good or the bad elements of the RDR but can anyone tell me about another “project or development” anywhere in industry or commerce where costs increases of this magnitude would not at the very least have caused that project to be revisited and restructured to reduce those costs or even – dare I say it – be kicked out and some serious conversations held about this year’s bonuses.
What respect can we have for a system that purports to proceed on the basis of cost benefit analysis that does not automatically review the project when an error of this magnitude surfaces?

I am probably wrong but this smells badly of the “this is what we are doing, we are just bulldozing on” attitude. That may or may not be true but it taints the relationship between regulator and regulated.

Alastair Lyon
ifadirect.co.uk
Surrey

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Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. There is NO other field of industry or commerce in which cost increases of this magnitude, i.e such a massively inaccurate cost:benefit analysis, would be tolerated.

    The core of the problem is that the FSA is effectively accountable to no one. It is even permitted to ignore completely the Statutory Code of Practice For Regulators. Statutory, of course, means in statute and thus the Law of the Land. From this, we may reasonably infer that the FSA is allowed freely to act without regard for the Law. It routinely breaches the Statutory Code (the Law) but no agency of the Law makes any attempt to hold it to account.

    A legal challenge from any private firm or individual with the wherewithal to fund it would be fought using money extorted from the very people who would be challenging the FSA’s actions against them. Surely, that in itself is against, at the very least, natural justice?

    The FSA sets its own agenda and anyone who disagrees can either go jump off a cliff or simply be trampled over and crushed like some tiresome and inconsequential insect.

    Yet this tyrant quango is what Gordon Brown has described as “a world class regulator”. How much more out of touch could the man possibly be?

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