The Financial Services Authority (FSA) says the industry is set to be hit with £127m of one-off compliance costs on the back of its latest platform proposals.
The regulator says that both platform operators and other intermediate unitholders can expect to be charged £60.2m to meet the new proposals, while fund managers will be hit with a £6.6m charge.
Platform operators can also expect to pay £25.3m of ongoing costs, while other intermediate unitholders can expect to pay £21.2m. Fund managers will have ongoing costs of £1.1m.
The FSA says that approximately £70m of one-off costs and £34 of ongoing costs are “attributable to the proposals on the provision of information to fund managers and underlying investors”. A further £26m of one-off and £9m of ongoing costs are owing to the ban on cash rebates to consumers. (article continues below)
The rest is down to the disclosure of payments that platforms receive from fund managers and product providers, which account for a £25m one-off and £3m ongoing costs and proposals on mandatory re-registration, which levy a £7m one-off and £2m ongoing cost.
The regulator says that retail distribution review-related proposals account for £50.9m of the one-off costs as well as £12m ongoing costs. Registration proposals account for £7.4m on one-off costs and £2.1m of ongoing costs. Provision of information proposals accounts for £68.7m of one-off costs and £33.6m ongoing.