The financial adviser fee block is set to see a 15.5 per cent increase in regulatory fees for 2013/14 – up from £32.8m to £37.9m.
The Financial Conduct Authority published its consultation on regulatory fees and levies this week in which it outlines how much firms are likely to pay for the next financial year.
Of the total £432.1m FCA budget, the industry will pay £391.5m, following £40.6m in retained FSA fines.
Once these discounts are applied to the A13 fee block, which covers most financial advisers, advisers’ regulatory fees are set to go up by 15.5 per cent from £32.8m in 2012/13 to £37.9m in 2013/14.
The FCA estimates the number of adviser firms in the A13 fee block has fallen to 7,000 for 2013/14, compared to 7,086 in 2012/13. It says around 35 per cent of adviser firms will continue to pay the minimum fee of £1,000.
Advisers in the A12 fee block, covering those who handle client money, face a 69 per cent fee hike from £22.3m to £37.7m.
Mortgage brokers are set for a 29 per cent fee increase from £10.5m to £13.5m while general insurance brokers face a 16 per cent increase from £21.4m to £24.8m.
Fund managers’ fees are likely to go up by 27 per cent from £26.5m to £33.6m.
The combined FCA and Prudential Regulation Authority annual budget totals £646.3m – up 15 per cent from the former FSA’s annual budget of £559.8m for 2012/13.
Yellowtail Financial Planning managing director Dennis Hall says: “Advisers end up getting squeezed by these cost increases.
“We cannot pass a 15 per cent cost hike to our clients as post-RDR they are questioning even more what they are paying for.”