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Advisers’ regulatory levies to rise 4%

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Advisers’ regulatory levies will increase by just over 4 per cent in 2018/19, the FCA has confirmed.

The regulator has announced its final fees statement today with the A13 funding block, which includes advisers, fielding £80.3m in levies, up from £77.1m in 2017/18.

The increase is proportionally greater than for life and general insurers, for example, which have both seen a 3.2 per cent increase in funding, but is around the same as the 4 per cent increase for portfolio managers and less than the 5.1 per cent increase handed to corporate finance advisers.

While the FCA collected less than it planned to in penalties from badly behaving firms –  £47m compared to the £48.2m it estimated in April – it was still able to use £4m to offset the advice block’s fees.

The FCA’s overall annual funding requirement is £543.9m, an increase of 3.2 per cent.

FCA plans 4% increase in adviser levies

The FCA board approved the 2018/19 total annual budget of £289.8m for the Financial Ombudsman Service in March. While the majority of the FOS’s income comes from case fees, it asked the FCA to recover £24.5m by general levy.

The FCA policy statement says there has been no change to the Money Advice Service budget for 2018/19 since its earlier consultation so the regulator will collect £83.1m.

The FCA says the Department for Work and Pensions has notified it the final 2018/19 Pension Wise funding requirement is £16.9m, down from £20.3m, which was estimated in the consultation paper.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Julian Stevens 3rd July 2018 at 6:53 pm

    Apart from our endlessly spiralling FSCS levies due to regulatory negligence, the main driver of these increases must surely be the government’s policy of confiscating all fines collected by the FCA. What hope for the pie-in-the-sky aspirations of the FAMR?

  2. It tells you and tells the consumers of financial services firms something very important…..
    These budgets are all agreed by the FCA board themselves ….

    Let us all not forget, they work on a “take as much as we need basis” with little or zero concern of were it comes from or who ultimately pays (the consumer)
    It is sad to say, I have gone beyond angry, as a large part of my business is just tax (if you will) collection ….tax collection to pay for a unaccountable, incompetent, and not fit for purpose regulator…. tax collection to pay for the bad advice of others which I have no control over.
    The cost of advice and services just increase accordingly to pay this tax, it’s about time the government and the regulator are honest and up front about this…….. a cost benefit analysis would be a good starting point !
    Tell the consumer honestly why advice is so expensive, tell the consumer honestly why, they have to pay for others wrong doings and tell the consumer honestly why the benefit of having a very expensive regulator offers very little benefit whatsoever!

  3. Paying thewse monkeys a lot of peanuts already!!!

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