The FCA has proposed a 4.2 per cent increase in adviser fees for the coming year.
For the 2017/18 financial year, the A13 fee block, of which advisers and other intermediaries are part, contributed £77.1m in regulatory fees.
In a statement accompanying its business plan for the year ahead this morning, the FCA has proposed increasing this to £80.3m for 2018/19.’
Life insurers will also see fees rise from £41.8m to £43.3m, an increase of 3.2 per cent.
The plan is up for consultation until the beginning of June.
In total, the FCA says it requires a 3.2 per cent increase in budget for the coming year. The increase is mainly down to costs associated with Brexit and areas such as Mifid II.
An £11.0m increase in costs for the FCA from Mifid II has partly been apportioned to the adviser fee block.
Advisers will see a small increase in contributions towards the Money Advice Service, from £1.9m to £2.2m, as well as the amount paid towards Pension Wise, which is planned to increase from £2.1m to £2.4m. However, advisers will not be paying a greater proportion of Pension Wise bills, as the FCA notes that providers and investment companies are also likely to benefit from those take advice after going to the government-backed guidance service.
The FCA writes: “The A.13 fee block includes firms that provide financial advice who will only benefit if, after using Pension Wise, consumers seek advice from regulated financial advisers. However, firms in the other four fee-blocks will more likely benefit as the monies released through greater pension flexibility, if used for investment, will be distributed among them.”