Tenet asked why, at a time when the government is preaching austerity and implementing major spending cuts, the FSA seems entirely exempt.
“The recent statement from the FSA that its costs will rise from £500.5m in 2011/12 to £578.4m for 2012/13 has caused some consternation within an industry already stretched by the financial impact of regulatory change,” said Tenet’s distribution & development director, Keith Richards.
He claimed that while the industry has to foot the bill, it is the consumer who will ultimately have to pay as the increasing costs will be passed on and possibly impact accessibility to advice for some.
Tenet is stepping-up its campaign to challenge both regulatory and FOS costs and has called for a fundamental reappraisal of the regulatory and claims culture system.
“Although the proposed regulatory increase has greater impact on banks and insurance companies, we are all affected and should be unified in seeking government intervention,” proposed Richards.
“Hector Sants 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?
“And let’s not forget that, in a contracting industry, this increased cost burden becomes proportionately greater for those who remain.
“How can the regulator work in such isolation and be so out of touch with reality or the consequences of its actions.”
