Network members likely to face fee hikes
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Members of the largest IFA networks are likely to be hit with the biggest increase in FSA fees and levies.
The FSA today published its regulatory fees and levies for 2010/11, which shows that of the medium to large firms that pay the minimum and straight-line fee, 90 per cent will pay lower fees in 2010/11, with 10 per cent facing an increase.
Speaking to Money Marketing, FSA manager of finance and planning Mark Hunnable says it is the largest networks that will see the increase.
He says: “Network fees will be higher and will be subject to an increase. How individual networks choose to pass that on to their members will be a contractual issue between the networks and their member firms.”
The annual funding requirement for all IFAs overall will fall from £43.8m in 2009/10 to £40.2m in the next financial year.
The minimum fee for the smallest firms will fall from £1,850 to £1,000.
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Readers' comments (1)
Anonymous | 23 Feb 2010 3:56 pm
Not all networks are the same. Paradigm Financial Advisers covers the cost of all regulatory fees AND PII costs within their monthly fee. When considering a network ensure you talk to these guys as it offers not only good value, but their innovative approach to supporting wealth management IFAs is not rivalled in an other network proposition. Be informed!
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