'Forensic economists' find IFAs generate just 2% industry revenue

The initial estimates of a ‘forensic economics' business hired by AIFA to scrutinise the FSA's budget found the net revenues of IFA firms represent about 2% of the income of the financial markets regulated by FSA. However, it concludes advisory firms pay 25% of the regulator's total costs. "IFAs are therefore burdened with a disproportionate and unfair share of the costs of regulation which are ultimately and inevitably met by consumers," AIFA policy director Andrew Strange says. The findings of the forensic economists will form part of AIFA's response to the FSA's consultation on ...