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Apfa: Advisers face 30% FCA fee hike

Chris Hannant 480
Apfa policy director Chris Hannant

Apfa estimates advisers face a 30 per cent hike in regulatory fees as part of the FCA’s £432m budget for 2013/14.

The FCA’s business plan, published this week, shows the annual budget for next year has been set at £432.1m – a 23 per cent reduction from the FSA’s £559.8m budget in 2012/13.

The FCA budget has been pushed down by certain costs now moved across to the new Prudential Regulation Authoruty.

Of the total £432.1m FCA budget, the industry will pay £391.5m, due to £40.6m in retained FSA fines. The business plan suggests around 30 per cent of the budget will be paid for by investment advisers, mortgage advisers and general insurance brokers, which would amount to £118.6m based on the £391.5m figure.

The FCA will publish a paper next month setting out the fees firms will pay. Last year, advisers in the A13 fee block, covering those that do not hold client money, paid £32.8m towards the FSA’s annual budget, with all advisers paying a total of £87m.

The FCA will employ a total of 2,848 full-time equivalent staff in 2013/14 at a cost of £261.3m.

Staff numbers are down 29 per cent from 3,992 in 2012/13, not including those staff moving across to the new PRA.

Hudson Green & Associates principal Ian Hudson says the FCA might have increased costs for intermediaries if it had allocated more resources to monitor RDR and Mortgage Market Review implementation.

He says: “I hope there is some rationale behind this and the regulator has not just decided to dump additional costs on advisers.”


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