RDR to cost five times more than estimated

The FSA has made a major upward revision of the RDR's costs in its policy statement today.

Costs to intermediary firms have risen three-fold to £120m annually. Annual costs could be more than five times as expensive as the FSA initially predicted in June last year. Ongoing annual costs may rise to over £200m, the FSA says, compared with early estimates of just £40m. Total costs in the first five years could hit £1.7bn, almost three times the £0.6bn figure quoted in last June's consultation paper. One-off costs on implementing the RDR could be up to 75% higher than expected at £750m. Advisers' one-off costs are expected to rise to as much as £370m, compared with ini...