By adding LIBOR fixing, money laundering and a series of investment company failures, joe public is demanding stricter regulation.
The early signs in 2013 are not good for us. The cost of doing business in the UK is spiralling upwards at a time when our income is coming under attack.
MEPs wanting to cap fees, plans for hard commission disclosure on protection and GI, and pressure on proc fees combined with demands for better quality.
This looks challenging even without an increase in regulatory costs. A more assertive and aggressive FCA is forcing lenders to look at intermediaries and drive them to increase their compliance functions or engage service providers who will deliver such support.
The FSA/FCA bills that will arrive this year are already looking daunting. The issues surrounding PPI, mean that the FSCS bill for those holding insurance permissions is likely to increase further.
The general levy and case fees for FOS are going up. Whilst MAS total costs are slightly down I fear that with fewer and fewer firms and advisers, the bill for those remaining is going up.
Then we will get the first view of the costs for the new split FCA/PRA and whilst I have no inside information, my instincts tell me that we should be very afraid. The hidden costs of the plethora of Section 166 investigations thrown out adds to the burden.
Whilst 25 free cases from FOS will assist smaller DA firms, this is the only light at the end of a pretty dark tunnel.
So, while all trade bodies, AMI included, will grind their teeth, shout with rage and demand better value for the fees, we are on shaky ground. The industry needs to clean up its act, oust the charlatans, only recommend great products from good firms and avoid being seduced by clever marketing and spin.
Old fashioned advice values built on simple products has to be the order of the day.
Robert Sinclair is chief executive at AMI
