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FCA plans 4% increase in adviser levies

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.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. So much for absorbing Brexit costs (not that I believed it anyway)

    As for the rest of the article, which ever way you spin it Mr FCA …shame on you !

    I think you should write publicly, to every single customer of financial services firms, exactly why you think the vast amount you collect in fees add any kind of value to them and why you are able to set your own budgets and spend their money in any way “YOU” deem fit.

    With a track record of failures and for being forever behind the gain line, surely your ability to continue this practice unchecked and unchallenged, goes against everything you demand from the industry you regulate.

    I say again….. shame on you

    Its about time you start to be the parent you claim to be, and lead by example……. after all you as the regulator get the industry you deserve !

  2. Lindsay Lockett 9th April 2018 at 9:43 am

    Oh well if the plan is up for consultation (a real one?) then I respectful decline the plans for a budget increase, is that OK ? Anyone else ?

  3. In the end our clients pay, there is no other source of funding.

    So much for avoiding consumer detriment, they are being systematically milked by the system.How about geting rid of the

    • It is true the clients pays in the end. However, the FCA and politicians will never see it that way because if they did they would have to become accountable for the costs and they don’t do that.

  4. CONTINUED- PPI adverts and have a campaign to tell the public what a good job the FCA does for them, and what it costs. I am sure that will go down well.

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