FSA costs jump to fund rigorous bank oversight

-THE Financial Services Authority (FSA) yesterday said its funding requirement – which is paid for by the City firms it regulates – would increase to £505.5m in 2011-12, up from £454.7m in 2010-11.

Big institutions will bear the brunt of the increase, the FSA said, due to the extra resources needed for intensive supervision of high impact firms.

But the FSA said because of a surge in fines for market abuse – which are returned to the industry as discounts against their fees – firms will pay two per cent less than last year overall.