Two prominent investment associations have hit back at the UK Financial Services Authority for raising the amount of money the industry pays to fund the regulator, claiming asset managers are now "being asked to pick up the tab for banking failures".

The FSA said yesterday in a consultation pay that there would be a significant increase in supervisory costs for large firms, with the financial services industry paying a total of £1bn (€1.1bn) towards the FSA and the Financial Services Compensation Scheme over the next financial year.