Tenet Group is calling for a cost/ benefit review of what it regards as uncontrollable regulatory costs.
The Financial Services Authority recently revealed its costs would rise from £500.5m in 2011/12 to £578.4m for 2012/13.
Keith Richards, distribution and development director at Tenet Group, says: “At a time when the government is preaching austerity and implementing major spending cuts, the FSA seems exempt.
“While the industry has to foot the bill, it is consumers who ultimately pay as these ever-increasing costs will be passed on and affect accessibility to advice.”
He adds that although the proposed regulatory increase has a greater impact on banks and insurance companies, it will affect everyone in the industry so it should be unified in seeking government intervention.
Richards says: “The FSA recently stated that much of the cost increase is due to regulatory change, but wasn’t it the regulator who instigated much of this change and therefore could have avoided such an unacceptable price hike?”