Financial implications of the Act
- A summary of the financial effects of the measures of the Act is provided below. Further detail is provided in the impact assessments.
Single Financial Guidance Body
- The creation of the single financial guidance body will have a negligible impact on public expenditure. The transition between three services to the single financial guidance body will create short-term costs, which are provisionally anticipated to total £4.49m, excluding costs arising from digital transition and from redundancy, which have not been estimated.
- Subject to legislative changes, these transitional costs will be met by the financial services and general levies which currently fund the existing services.
- The financial implications of cold-calling and the debt respite scheme are not yet known. Impact assessments will be written and published on the Act’s website in due course.
Claims Management Company Regulation
- The measures effecting the transfer of claims management company regulation to Financial Conduct Authority will have a minimal effect on public expenditure, as it is intended that all costs arising as a result of the transfer will be borne by the claims management company market. The provisions relating to fee restrictions will also result in a cost to industry, however the equivalent benefit will be felt by consumers.
