The regulator has today published its consolidated policy statement on regulatory fees and levies, which sets out the final FSA fee rates and Financial Ombudsman Service levies for 2009/10.
The increase in fees for IFA’s will not be as steep as the FSA estimated in February. The fees, which were slated to rise by 15 per cent, will increase by just 4.8 per cent.
Mortgage brokers will only see a 2.7 per cent hike, compared to the estimated rise of 21.2 per cent.
However the FSA is raising 35.8 per cent more in fees than it did last year. Banks and other deposit takers will see their total fees increase by 109.4 per cent from last year, compared to the 94.9 per cent rise proposed.
Minimum FSA fees will be frozen at 2008/09 levels, as proposed in February’s consultation paper. The FSA says once the financial penalty rebate is applied, approximately 10,000 of the smallest firms will see a fee reduction compared to the previous year.
The FSA says it “works hard to ensure that fees are allocated as fairly as possible, with the largest fee increases being allocated to the firms that require the most use of the extra supervisory resource”.
The Association of Independent Financial Advisers and the Association of Mortgage Intermediaries say IFAs and mortgage advisers will save £11.7m on the initial FSA proposals.
Director general Chris Cummings says: “Following Aifa and Ami’s highly publicised fees campaign I am delighted that FSA has revised the fees paid by IFAs and mortgage advisers.
“Having reviewed the cost allocation across all fee blocks, those firms in the A12, A13, A18 and A19 blocks will be saving £11.7m compared to the proposed fees. This is an appropriate and welcome measure in difficult economic times. Aifa and Ami strongly believe that regulatory resources, and therefore costs, should be focused on those firms that require increased supervision and not those in the IFA and mortgage advice professions.”