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FSA budget to increase by 15%

The FSA has confirmed that overall regulatory funding will see a gross increase of 15.6% over the next year from £500.5m in 2011/12 to £578.4m in 2012/13.

According to the FSA’s Business Plan, most of the increase will be carried by large firms which will face more intensive supervision in the new judgement based approach to regulation being developed by the regulator.

Last year the Budget rose by 10% from £454.7m in 2010/11 to £500.5m for 2011/12.

In his forward to the plan, outgoing FSA chief executive Hector Sants says: “We recognise that the average increase in the FSA’s fees for last five years has been around 13%. This rate of growth cannot continue indefinitely, particularly when the financial services industry continues to be under pressure and so we would like to emphasise our commitment to ensuring direct costs of regulation are proportionate.”

Of the £578.4m budgeted for 2012/13, £32.5m is going towards the regulator preparing to switch to the incoming twin peaks regulatory structure. Last year that figure was £10.9m, an increase of 198%.

Part of the rise is also down to increases in staff pay averaging 3.5%.

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  • Warwick Tidy 22nd March 2012 at 3:53 pm

    I have to agree with bobby the FSA are FULLY aware of the intended consequences of all their actions against ‘the little guy’.It gets under their skin that despite us being good at what we do,we are nuisance value to them and an inconvenience.I have been to one of their latest money guzzling blue sky ‘business awareness workshops’ following their gun to my head ‘invitation’.What a barrel of laughs(not)it was. There are three well known promises in this life,one I cannot repeat here!!,the others are “the cheque is in the post” and the classic “I am here to help you”!!!. Yes the last one was indeed used. The FSA are generally very arrogant and cannot be trusted.Frankly they don’t give a damn.We are off to hell in a hand cart.

  • Jon T 22nd March 2012 at 3:40 pm

    I guess the austerity measures don’t apply to them. Makes sense, seeing as they’re not really into that whole fairness and accountability thing.

  • Just another leaver 22nd March 2012 at 3:17 pm

    So when 30% of over 55s leave the industry on 31.12.12 due to cant be arsed, fed up with the FSA, no study and switch to fees there should not be need to increase fees because there will be less advisors to regulate

  • bobby 22nd March 2012 at 3:15 pm

    Gary

    I hate to break the news to you , the FSA know full well we are dying and will be wiped out but they don’t care, infact that’s what they want.

  • Anon 22nd March 2012 at 2:46 pm

    “I am proud of the FSA’s achievements under my leadership. We have broken the back of the IFA market through RDR, and ensured that no one but the most wealthy will have access to independent financial advice. But it’s alright, we’ve got the Money Advice Service to take care of that.”

    “We are also successfully in the process of ensuring that home ownership is a vain aspiration for the majority of First Time Buyers, and leaving many existing homeowners as mortgage prisoners through MMR. And we’re proud of overseeing the biggest financial collapse in living memory and doing absolutely nothing to prevent or mitigate it because we were too busy with thee other things.”

    “Ruined aspirations, ruined careers, ruined lives. We’ve brought this all on, and we’re pround of it.”

    “Now, can we have some more money please?”

    Imaginary speech by Hector Sants (if he had a scrap of honesty in his entire being)

  • peter stimson 22nd March 2012 at 2:30 pm

    I think you are all missing the point

    THEY DON’T CARE!

  • steve o'connor 22nd March 2012 at 2:06 pm

    GET OUT BOYS. HATE TO BE NEGATIVE BUT THE TRADE OF FA’S AND MA’S IS ONLY GOING TO GET WORSE AND WORSE AND WORSE AND THEN DIE. YOU NEED TO TOTALLY DIVERSIFY INTO SOMETHING THAT IS NOT REGULATED BY THE FSA. AFTER ALL, THE TOTALLY INCOMPETENT HEADS OF THE FSA DRINK IN THE SAME PUB AS THE TOTALLY INCOMPETENT HIGH FLYING BANKERS AND ALONG WITH OUR TOTALLY INCOMPETENT POLITICIANS THEY LOOK AFTER THEMSELVES AND “ONLY THEMSELVES”.

  • CSH 22nd March 2012 at 1:55 pm

    It may be time for all to quit, what a sorry state to be in! vote for none regulation and resign from the FSA. No money to them and see how they survive.

  • Dazed and Confused 22nd March 2012 at 1:49 pm

    GARY – I think that is what the FSA have been angling for, for quite some time. It would be so much more convenient to just have the banks to regulate then it could all be done over a nice lunch!

  • GARY 22nd March 2012 at 1:28 pm

    Hector says the increase in fees will mostly be carried by large firms, but as we know this will be passed on to the advisors.

    WE ARE GOING BUST!!!!! WE BARELY COVER OUR COSTS AT THE MOMENT. WE CAN’T AFFORD INFLATION LET ALONE HIGHER FEES.

    WHY WON’T THE FSA TALK TO THE MORTGAGE INTERMEDIARY MARKET?????? IF THEY DID THEY WOULD SOON SEE THAT WE ARE DYING.

  • Phil Shelford 22nd March 2012 at 1:23 pm

    so whilst most are suffering the FSA sit pretty with nice pay rises and a ridiculous !5% increase in fees. Well done you must be very proud of yourselves.

  • Jim H 22nd March 2012 at 1:23 pm

    15% increase !!
    Who’s paying for that then……? Oh yeah, we are…..another salary cut for me then….thanks!

  • Dazed and Confused 22nd March 2012 at 1:22 pm

    Seems perfectly reasonable to me and undoubtedly represents excellent value for money…NOT!

  • Phil Shelford 22nd March 2012 at 1:22 pm

    so whilst most are suffering the FSA sit pretty with nice pay rises and a ridiculous !5% increase in fees. Well done you must be very proud of yourselves.