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FCA raises adviser fees by 10%

Advisers’ FCA fees will increase by 10.2 per cent next year, to account for higher staff and technology costs at the regulator.

In a paper on proposed fees and levies published today, the FCA says A13 advisers will pay £74.9m in 2015/16, up from £68m in 2014/15.

The A13 fee block relates to advisers who do not hold client money.

The regulator is also increasing its minimum fee from £1,000 to £1,084, the first rise since 2010. It says 38 per cent of firms will pay the minimum fee.

The FCA announced in its business plan earlier this week that its annual funding requirement will increase by 8 per cent, from £446.4m in 2014/15 to £481.6m in 2015/16.

It says the increase is driven by a £16m rise in staff costs due to higher headcount, and an £11m rise in costs relating to technology, upgrading information systems and a new learning and development suite, the FCA Academy.

The regulator is recovering the increase across all of its fee blocks, but A13 advisers are seeing the highest increase.

The FCA says this is because it adjusted fees for this block by £1.1m in 2014/15, as it had over-recovered RDR change costs the previous year.

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Comments

There are 15 comments at the moment, we would love to hear your opinion too.

  1. Here we go again instead of cost cutting by one moving from Canary Wharf to more realistic offices just hike the fees. Be interesting to see where the board meetings are held, how much the bonuses increase and how top brass expenses add up

  2. I’m convinced the FCA will only be happy when there are no advisers left. They’ll concentrate on providers and banks and we’ll be consigned to the annul of history. They can’t keep going back to the well this way as it’s getting beyond a joke. Less advisers than at any point in history but the FCA needs more staff. This can’t be real, and why are there not serious questions being asked at government level about how this organisation is being run?

  3. Surely the ‘TSC’ need to call FCA to account, albeit it a toothless outcome!

  4. Yet another example (as if any were needed) that the FCA should (and, in any properly democratic society, surely would) be subject to the imprimatur of a Statutory Independent Regulatory Oversight Committee to yank the reins on increases such as this. When if Parliament going to wake up to this and do something about it? Because it has absolutely no powers other than to ask questions, the TSC is a waste of space. One can imagine Andrew Tyrie suggesting to Martin Wheatley that this increase really is excessive, particularly in view of all the other financial drubbings to which the intermediary sector is constantly subjected and that the FCA ought to reconsider. What would Martin Wheatley’s response be? Yeah, well, it’s already done and announced now so we’re not going to revisit it and, if you don’t like that, you can go……

  5. Just taken this from the FCA Website. My employer can`t offer these sort of benefits, and I would warrant that there are NO financial services firms out these who could. This tends to explain why they have such a rapacious appetite for our money.

    Work with us and you’ll receive a range of benefits on top of a competitive salary. That’s because we value our staff – their hard work, expertise and commitment.

    We offer:
    •up to 38 days’ holiday (our flexible benefits scheme lets you add to your core allowance up to this amount).
    The core allowances are: ?Administrators and Associates: 25 days
    ?Manager and Technical Specialist: 28 days
    ?Head of Department and Director: 30 days

    •a competitive non-contributory pension scheme
    •an employee assistance programme
    •a health screening
    •an annual incentive bonus scheme
    •an interest-free season ticket loan of up to £7,500
    •the opportunity to apply for sponsored study

    Protection for your future includes:
    •life assurance
    •private medical insurance
    •permanent health insurance
    •occupational sick pay

    We’ve also got a flexible benefits allowance that lets you:
    •extend your health and private medical insurance to cover your family
    •opt for dental cover
    •opt for childcare vouchers
    •opt for travel insurance
    •top up other benefits, including your holidays and pension

    If you don’t want to buy extra benefits with your allowance, you can have it added to your salary instead.

  6. @. I think the FCA are moving to the Olympic Park.

    I don’t object to paying for regulation, however it would seem to me that a 10% increase would need some degree of significant justification. Given that inflation is now 0% and all advisers are qualified to a reasonable level, all are charging fees, autoenrolment is on the way and the FCA is taking the approach of “pro-active” regulation of specific issues, it seems somewhat more reasonable that the cost of regulation should actually be falling, not rising. There are many good things that the regulator does, but doing its sums on costs of doing the job well enough is not one of them.

  7. What ever happened to the approx. £118 million these muppets overcharged us??? We should all refuse to pay our fees until they remedy this theft.

  8. Simply because they can do what they like and they do just that…….and charge what they like… If you don’t like the fees.. then get out the business…The single most autocratic entity this side of an African dictatorship…

  9. and it will get worse… even if their costs remain the same – yeah some hope – there will be significantly less advisers to spread the load post March 2016.

  10. In case you haven’t realised, the FSA/FCA had an unwritten objective to shrink the advice community to a handful of large players which could be monitored and dictated to with ease.

    …..almost there!

  11. Given that their core objectives have been reduced by the split into FCA & PRA one would be forgiven for thinking that fees should have reduced.

    Of course, if the humongous fines weren’t dished out to the Treasury, which gave some to the armed forces and kept 90% for other purposes, then we’d actually have around a 30% reduction.

  12. Arrogance; pure unadulterated arrogance. The FCA knows it can “deal” with any IFA company/firm/partnership that gets anywhere near to a successful challenge to its overarching authority.

  13. @ wingco

    But maybe not a well funded trade association with some spunk

  14. Garry (11.14)

    A counter irritant IS needed but, as you quite rightly say, a more dynamic trade association would be a great asset

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