FCA: ‘We are not failing to consult on adviser fees’

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The FCA has rebuffed claims that it is failing to properly consult on adviser fees and levies due to the timing of its publications.

The regulator published its policy statement on fees today, confirming plans to set the total adviser levy at £73.7m for 2016/17.

The policy statement reveals the FCA has come in for criticism from an undisclosed adviser trade body over the timing of consultation dates and when the fee rate rules will take effect.

The trade body said in recent years, the March and April consultation papers on fees and levies were scheduled to close after the changes took effect in April.

The FCA fees statement says: “They believe that consulting at such a late stage means that it is not a consultation in any real sense of the work and we are failing in our obligation to consult.”

In response, the FCA says: “We are meeting our obligation to consult on fees and levy rate rules. The consultations through the March/April consultation papers relate to the draft fees and levy rate rules which are proposed to apply to a fee-year which runs from 1 April to 31 March. The consultation closes at the end of May.

“Following that consultation and taking into account responses received the fees levy rate rules are made by our board in June with a commencement date shortly after.

“The final fees and levy rate rules are published at the end of June or early July in a policy statement together with our feedback on the responses received to the consultation.”