The Treasury says that it will take into account the cost of implementing the regulatory regime for both lenders and brokers.
Most respondents agreed advice should be regulated - provided the approach taken by the FSA was a “light touch and proportionate”. But many believe that it's not possible to state categorically “that the costs of changing from one system to another will be relatively modest”.
One respondent says: “In principle, the introduction of a single regulatory contact should help lenders and borrowers alike, but [we] remain to be convinced that the compliance costs arising from the proposals will be low.”
A spokesman for the Treasury says: “The Treasury has noted the comments.”