AFR for 2012/13 to hit £578.4m, FSA says
02 February 2012 at 17:29
The Financial Services Authority (FSA) has revealed the annual funding requirement (AFR) for 2012/13 will increase 15.6 per cent to £578.4 million, it was announced today (February 2nd).
The price hike reflects the costs of reforms to financial services, which will see the Prudential Regulatory Authority and the Financial Conduct Authority take regulatory responsibility from the FSA.
According to the watchdog, larger funds will bear the brunt of the cost increase, with 42 per cent of authorised firms expected to pay the £1,000 minimum fee.
FSA chief executive Hector Sants said: “The FSA will continue to deliver intensive and intrusive supervision and develop the key policy initiatives but we are not planning any new discretionary initiatives.”
The AFR increase was not appreciated by the director general of the Association of British Insurers Otto Thoresen, who does not believe the regulatory split justifies the change.
He said: “We knew that there would be a cost involved in moving to twin peaks regulation but, in this difficult financial environment, all organisations need to be focussed on controlling their costs.”
Posted by Claire Robin