AIFA: review of FSA costs needed

The Association of Independent Financial Advisers (AIFA) has emphasised the need for an examination of the Financial Services Authority's (FSA) expenses and hoped that it may occur during a planned review by the National Audit Office.

Andrew Strange, director of policy at AIFA, also described the move to increase the cost of employing more than 26 advisers as "poor value" for independent financial advisors (IFAs).

He noted that there were a number of more suitable risk indicators than firm size and the decision of the FSA not to look at them was disappointing - with the AIFA wanting further investigation of the use of regulatory dividends.

And Mr Strange noted that the move to a straight-line recovery model for fees does not take into consideration the real size of companies' risk profiles.

The group recently said that it believes the revised fees structure did not accurately reflect the risk posed by the IFA and the intermediary sector.