The FSA states that most of the increase will be passed on to deposit-takers and other high impact firms. However, on closer inspection of the paper, the fund management industry also faces a rise of 7.9% - and, given the fact that funds under management are down, the impact on large firms will be far greater than this.
Commenting, Guy Sears, Director of Wholesale at IMA said: "The fund management industry remains well regulated with an excellent reputation in terms of transparency and governance. While there will clearly be a need to reassess the resources devoted to banking supervision, it is unclear to us why the fund management industry is facing such an increase. These extra costs come at a time where funds under management are down and where it is ever easier to relocate fund management away from the UK. It is vital that we have a strong regulatory regime but it must not be forgotten that these costs will ultimately be borne by investors, pension schemes and funds. It is another tax on saving in a very difficult year."
