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1 December 2006

In June 2006 the FSA published a report by Real Assurance Risk Management which described the results of work to estimate the total cost of the administrative burdens imposed on the UK financial services industry by the rules in the FSA Handbook.

This follow-up report extends the estimation of administrative burdens to include those costs arising from requirements on firms to provide information to third parties, especially customers.

Real Assurance was unable to generate rule-by-rule estimates of the sort included in their earlier report because most firms responding to the questionnaire were unable to allocate their costs at the level of individual rules. Instead, the results of this study were broken down by the modules in the FSA Handbook.

Overall, we have work underway to review all the areas covered by this study with the exception of the New Collective Investment Schemes Sourcebook (known as COLL). Parts of this are in operation already, but it does not fully replace the current Collective Investment Schemes Sourcebook (CIS) until February 2007. As a result, we do not yet have any plans to reform these rules but will be looking at how they operate in practice.

Report

Estimation of FSA third party administrative burdens [PDF]