The FSA has cautioned that the financial services industry will bear the brunt of higher regulatory costs under the more interventionist FCA
The financial services industry will have to bear the brunt of higher regulatory costs under the more interventionist Financial Conduct Authority, the FSA has warned.
At an FSA conference on the FCA this week, FSA chief executive Hector Sants said the early intervention approach proposed for the FCA offers greater prospects of success but comes with “the certainty of extra cost”.
FSA interim managing director of the conduct business unit Margaret Cole told conference delegates: “We are trying to raise a mature debate on the extent of what the regulator can and should do and what the costs of that might be.
“If society’s expectation is that we are going to be a much more interventionist regulator, taking more risk and bringing more enforcement action, then inevitably that comes at a cost. We have to make sure as a regulator we give value for money, we have to manage our budget carefully and make sure there are not inefficiencies and we always have to be alive to that.”
The FSA announced in March its budget was rising by 10 per cent from £454.7m in 2010/11 to £500.5m in 2011/12, including a £10.9m cost of moving to the new regulatory structure.