The Index reported 38.96 per cent of firms found their compliance costs rose by between 11 and 30 per cent; 27.27 per cent said they rose by 1 to 10 per cent; 15.58 per cent reported a rise of 31 to 60 per cent; 6.49 per cent found costs rose by 61 to 100 per cent; 2.6 per cent said they rose by over 100 per cent; and 9.09 per cent saw no rise.
Tony Jones, managing director of Pink Home Loans, said: “Effectively these statistics show that two-thirds of firms are reporting a hefty increase in compliance costs. Inflation is around 2.5 per cent and the average pay increase is around 4 per cent which highlights just how high these figures are. As important as regulatory standards are, it is important to reiterate that a cost-benefit allowance must be carried out to prove just how effective the new regime has become.”
When asked if firms had a specific person charged with control over their Financial Promotions, 75.32 per cent said they did while 24.68 per cent did not. The survey, completed by 1,000 intermediaries that have been registered with Pink, was the seventh to be conducted by the packaging and distribution company.
Brian Murphy, head of lending at Mortgage Advice Bureau, said: “It’s difficult to calculate a definite figure but we have seen a substantial increase in compliance costs much like everyone else in the industry and the figures stated in the survey are very realistic.”
Kevin Paterson, director of the Park Row Group, said: “The figures come as no surprise. Regulatory costs should have been factored into a firms’ business model.”
