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FCA set to reduce adviser regulatory fees

The FCA has proposed a slight reduction in the amount advisers pay towards the regulator next year.

In a consultation on the regulator’s funding this morning, the FCA says it plans to reduce the amount the “A13” fee block pays – which includes advisers and some brokers – from £80.3m in 2018/19 to £79.4m in 2019/20.

If approved, the measure would represent a fall of around 1 per cent in adviser FCA levies.

However, the amount the A13 fee block pays towards pension guidance services is set to tick up from £2m to £4.3m.

This is due to the overall budget the Department for Work and Pensions required for pension guidance increasing due both to the creation of the Money and Pensions Service to combine the three existing government guidance services, and an extra £5m for the pension dashboard.

Overall, the pension guidance budget is set to increase from £20m to £36m, with advisers paying the same proportion – 12 per cent.

The FCA does not set the pension guidance budget, but collects levies on behalf of the Treasury.

It says in the consultation: “The MAPS has not been in operation for sufficient time to have produced data to justify changing the allocations. During this year we will discuss with DWP, HM Treasury and the MAPS whether to allocate MAPS costs to firms differently in future.”

The FCA adds it has had to include a £2.5m bill for Mifid II scope change on to bills across a number of fee blocks, including advisers’.

Investment managers will see a 3 per cent increase on their fee level to £12m, as will life insurers, rising to £44.6m.

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Comments

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

  1. Yay…’I’m in the money….’ :-/

    • No you’re not as they took it away with the other hand through the increase tax they collect from us for the pension guidance body.
      No taxation without representation and yet the FCA are increasingley becoming a secondary tax collector what with trousering fines for the Treasury originally justified for wounded service people following the banking collapse and now just going in to the general taxation coffers rather than offsetting FSCS fees as was originally the case.
      And they wonder why 52% of the population voted for Brexit…. it could be people are fed up of the London elite creaming off the rural poor. Perhaps we need another Cromwell.
      Oh and I voted remain, but I could see the likely outcome of the referendum and Trump and Turkey coup, the only thing from that year I didn’t get right was the invasion of Latvia, Lithuania and Estonia by the Russian’s but that might just wait until after Brexit now.

  2. I would me more impressed if the FCA had said that they were increasing investigations into how they let unregulated investments that go wrong be the cause of regulated adviser payments increasing

  3. An increase from 2.3m to 4m – hardly a tick up!

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