RDR: FSA hints at extra costs of IFA exodus

In its RDR Consultation Paper released today, the regulator says research estimates around 20% of firms will leave the independent sector, with the majority joining the non-independent sector.  The paper says those firms looking to exit the independent sector are mostly small and commissioned based, adding costs may arise as a result of these moves.  In addition, the regulator is estimating the incremental compliance costs of implementing the RDR to be £430m as a one-off cost and £40m a year after that.  Annualised costs amount to £140m over five years, it says. But it adds this re...