§ Mr. DrewTo ask the Chancellor of the Exchequer what charges the Financial Services Authority will(a) incur and (b) charge following the introduction of the Insurance Mediation Directive. [173761]
886W
§ Ruth KellyThe Financial Services and Markets Act 2000 requires the FSA to publish a cost-benefit analysis of its proposed rules and guidance, which includes the direct costs to the FSA incurred as a result of introducing and implementing the proposals. The FSA has published a cost-benefit analysis in each of its consultation papers, which are available from the website, www.fsa.gov.uk.
The fees charged are a matter for the FSA. Application fees for insurance intermediaries have been set following consultation with the industry and are based on the volume of business undertaken. Up to 50 per cent. discount is offered for an early application together with further discount if the application is made electronically. Smaller intermediaries seeking authorisation could pay a fee of only £500 if they take advantage of the early application deadline of 31 May 2004. If a firm is already authorised by the FSA for other regulated activities, the application fee it would pay for IMD activities is halved. The periodic annual fee which will be charged by the FSA for ongoing supervision of authorised intermediaries following the commencement of regulation has not yet been set and will be the subject of a forthcoming consultation this summer, but the FSA has indicated that the minimum periodic fee for a full year of mortgage/general insurance regulation will be in the region of £750.