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FCA sets budget at £446m; Advisers to pay third of costs

The FCA has set its 2014/15 annual budget at £446.4m, with almost a third of the costs falling on advisers.

The budget represents a 3 per cent increase from £432.1m for 2013/14.

In its business plan, published today, the FCA says there is a £10m underspend from last year’s budget which will be offset against the budget for 2014/15.

Out of the total £446.4m, the industry will pay £402.8m, following a reduction of £43.6m in retained FCA fines. The FCA pays the proceeds of its fines to the Treasury, less enforcement costs.

The industry paid a total of £393.9m in fees last year.

The 2014/15 budget is made up of £452m to fund the regulator’s operating costs and £4.4m to cover the cost of implementing the Alternative Investment Fund Managers Directive.

The regulator will also incur a further £41m in costs related to taking over the supervision of the consumer credit market, which will be recouped from consumer credit firms over several years.

Over 31 per cent of the FCA cost burden will fall on investment advisers, mortgage brokers and general insurance brokers. A further 27 per cent will fall on banks, building societies and mortgage lenders, and almost 14 per cent on insurers. Fund managers and scheme operators will pay for almost 13 per cent of the FCA’s budget, while around 15 per cent will fall on other firms.

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Comments

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  1. It wouldn’t be so bad if the FCA considered the words ‘value for money’ when they set the charges the industry has to fork out for the privilege of being regulated, but the costs don’t bear any relation to anything close to being reasonable or realistic!

    The Treasury should order them to halve their costs – but do more with the money they collect. In other words, act like a commercial concern. No more wasting money on fancy offices in one of the most expensive areas of London – why do they all need to be based in London anyway?

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