Apfa is calling on members to push the Financial Conduct Authority to reconsider how it has allocated its £432m budget to advisers and to fight against “unsustainable” hikes in regulatory fees.
The FCA set out its plans for regulatory fees and levies for 2013/14 in April. The consultation paper sets the regulator’s budget for the next financial year at £432.1m, of which the industry will pay £391.5m following £40.6m in retained FSA fines.
Firms in the A13 fee block, which covers most advisers, are facing a 15 per cent increase in regulatory fees from £32.8m in 2012/13 to £37.9m in 2013/14.
Under the plans, financial advisers are paying 10 per cent of the FCA’s annual budget. When added to the regulatory bill for advisers who handle client money, mortgage brokers and general brokers, advisers are collectively responsible for 30 per cent of the FCA’s total budget.
Apfa is calling on members to respond to the FCA’s consultation paper to campaign against advisers shouldering a greater regulatory cost burden than life companies, general insurers or mortgage lenders.
The trade body has also produced a template for members on its website for advisers to submit their response.
Apfa policy director Chris Hannant says: “This is a consultation and we want advisers to write to the regulator and share their concerns over the impact increasing regulatory costs are having on their businesses. The more people that write to the FCA on this, the greater the chance there is of it listening.
“Given the implementation of the RDR, we do not believe the current allocation properly reflects the risks that the advice sector presents. It does not reflect the FCA’s own assessment of risk as reflected in its business plan.
“Furthermore, the FCA must take account of the reduced number of advisers and that continued increases in fees for advisers are unsustainable. We want the FCA to reconsider how it has allocated its costs.”
The deadline for consultation responses is 9 June.