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It’s time to ask if the FSA provides value for money

Name and address supplied

I have just spent £400 for my accountant to prepare the figures for the half-yearly RMAR for the Financial Services Authority. Once he had compiled the figures I spent a day preparing the rest of the information.

I accept the FSA requires certain information but insisting that small firms supply this information twice a year is totally unnecessary.

As it will see from the information supplied, most one-man firms have a turnover of less than £50,000 and when regulatory costs together with indemnity insurance and additional accountancy fees start to approach 10% of turnover you have to ask if it is financially viable to stay in the industry.

I don’t think any other regulated industry has ever been as compliant and cooperative as the mortgage industry, but the FSA is stretching this goodwill thin by continually increasing the costs and administrative burdens it heaps upon us.

Like its boss Gordon Brown, it keeps talking about better and lighter touch regulation yet we at the sharp end don’t see this. It’s about time an independent body looked into the spiralling cost of mortgage regulation and reported back as to whether or not the cost provides proportionate benefits.

Name and address supplied

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