Consultants costing regulator £1m for work on RDR

The FSA has paid almost £1m to external consultants for work related to the retail distribution review (RDR).

The regulator has made 11 payments totaling £986,819 since 2007, according to a Freedom of Information (FoI) request.

The payments include a £277,916 single payment to market research agency BMRB in 2010 and a £134,660 payment to Deloitte the previous year.

The London research agency IFF Research received two payments, including £58,574 for work ordered in November 2007 and £75,110 for work in early 2009. (article continues below)

Alan Lakey, a partner at Highclere Financial Services. says: “This is industry money and the FSA thinks it can spend whatever it likes because it can simply charge the industry higher fees next year.”

The FSA said in a previous FoI disclosure, revealed by Money Marketing, Fund Strategy’s sister publication, in August, that it had spent £2.95m so far on developing the RDR.

An FSA spokeswoman says: “The period 2007-10 has been an intensive period of RDR discussion, consultation and policy development. The research provided an evidence base on which to develop the proposals put forward by industry working groups.”