RDR to cost five times more than estimated

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, according to today's paper. 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...