View more on these topics

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 2013/14’s £432.1m.

In its business plan, published this week, 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, minus enforcement costs.

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.

A further £41m in costs relate to the FCA taking over consumer regulation, which will be recouped from consumer credit firms over several years.

More than 31 per cent of FCA costs 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, while about 15 per cent will fall on other firms.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment