Apfa is calling on advisers to lobby their MPs over the proposed levy for the at-retirement guidance guarantee.
The guidance, designed to support the Government’s flagship pension freedoms policy, was initially due to be funded through a duty on providers and trust-based pension schemes.
But in a consultation paper published in July, the FCA said the levy should be funded by all firms which are deemed to benefit from the guidance.
This includes advisers who come under the FCA’s A13 fee block and have annual income of more than £100,000, who could pay 30 per cent of the costs.
Apfa is urging advisers to write to their MPs to explain how the cost of the levy will be passed onto consumers.
Apfa director general Chris Hannant says: “We are holding in-depth discussions with the FCA over the allocation of the levy as we believe the current proposals will impose a disproportionate cost on the financial advice profession and increase the cost to the consumer as a result. This undermines the aim of the guidance guarantee.
“Ultimately parliament will decide what powers the FCA should have to raise this levy.
“We are therefore calling on members to write to their MPs to explain how regulatory costs affect their business, and asking that the legislation include a requirement that the guidance guarantee levy is allocated in such a way that it does not increase the cost of advice to consumers.”
Apfa has produced a template letter for firms to use.