Consultations in a single year of regulator activity has created a £1bn a year ongoing cost to the financial services industry, new research has discovered.
Research carried out by Hargreaves Lansdown shows consultation papers running between October 2010 and October 2011 introduce ongoing costs ranging between £1,117,661,400 and £1,428,683,200a year.
One off costs from the 18 consultations active over the period total between £253,156,900 and £323,000,350 a year.
Consultation papers included in this cost review are CP10/22; CP10/25; CP1026; CP10/27; CP10/28; CP10/29; CP11/02; CP11/03; CP11/05; CP11/08; CP11/09; CP11/10; CP11/11; CP11/12; CP11/13; CP11/16; CP11/17; CP11/19
Tom McPhail, head of pensions research at Hargreaves Lansdown says: “We recognise that the regulator has a difficult line to walk between consumer protection and giving the financial services industry, which plays such a huge role in the UK economy, room to flourish.But we were surprised at the range of one off and ongoing costs facing the industry as a whole. We also recognise that a proportion of UK regulatory costs are driven by Europe.”