MMR 2012: Costs spiral up to £67m
Ongoing compliance costs of MMR proposals have also risen to between £49m and £172m a year.
The revision came following feedback from respondents to the cost benefit analysis in CP11/3.
They felt that the Financial Services Authority had underestimated the compliance costs of removing the non-advised sales process.
Consequently one-off implementation costs have been increased from £0.8m to £2.8m, while ongoing costs have risen from £1m to £3m a year.
The previous estimation was based on research provided to the FSA by Oxera and the Council of Mortgage Lenders.
However, it revised its estimate to take into account the fact that currently some lenders have a much larger percentage of non-advised sales and may need to recruit additional staff.