AIFA calls for probe into FSA’s spending

The Association of Independent Financial Advisers is calling on the National Audit Office to look into whether the Financial Services Authority offers value for money.

The Treasury is conducting a review into the work of the FSA in 2007/08 and while giving evidence for this, AIFA questioned the value the regulator provides.

It asked whether there has been a cost-benefit analysis of the £50m the regulator spent on implementing principles-based regulation, and if any financial benefit was gained from this whether it will be passed on to brokers.

The NAO last reviewed the FSA in 2007 but AIFA now wants it to scrutinise the regulator regarding the costs involved in implementing its Treating Customers Fairly initiative and Retail Distribution Review.

Robert Sinclair, director at the Association of Mortgage Intermediaries and AIFA, says: “Brokers have to be scrutinised by the FSA so it should be scrutinised too.”

The NAO says it can only audit the FSA if invited to do so by the Treasury or the FSA itself.

A spokeswoman for the NAO says: “The Treasury asked us to carry out a review in 2006 and we published our findings in 2007.

“We are not aware of any plans to invite us to undertake a further review.”