View more on these topics

FSA adviser fee burden rises 10 per cent

The FSA fee burden for advisers is to rise 10 per cent to pay for FSA staff retraining as a result of the move to principles, IT improvements and a greater investment in financial capability.
In the FSA’s 2007/2008 business plan, the fee rates affecting most advisers will rise by 10.3 per cent which reflects a 13.4 per cent increase in the fee block’s annual funding requirement, a 4.4 per cent increase in tariff data and a 8.6 per cent increase in its population compared to the previous year.
The burden on small firms is lessened by the fact they only pay a minimum fee, which will increase by 2.8 per cent. This will affect 40 per cent of advisers.
The overall FSA budget for ongoing regulatory activity will be £301.7m for the upcoming year, a rise of 10.1 per cent from the previous year.
The increase is due to greater funding for the FSA’s strategy on financial capability, from £9.7m to £17.1m, upfront investment of £11.3m on IT and £50m split over 10 years to help FSA staff adjust to the move to principles.
FSA chief executive John Tiner says he anticipates “more flexible and competitive levels of pay for our best people through reduced overall numbers of staff”.
He anticipates a headcount reduction by about 300 by the end of the decade, with increased bonuses for “exceptional performers”.
Tiner says: “I realise that this level of increase will concern many of our fee payers. However, the board is convinced that this is necessary to increase our effectiveness and deliver our statutory objective.”

Recommended

Means streets

James Salmon on how conflicting means-testing messages from the regulator and the DWP have left advisers in limbo.

Hip hope

Helen Pow canvasses industry figures over their expectations for home information packs and finds that many are sceptical that Hips will prove relevant in the absence of a home condition report.

Base rate held at 5.25 per cent

The Bank of England has held interest rates at 5.25 per cent.This follows last month’s quarter point rise. Alliance and Leicester head of intermediary mortgage Mehrdad Yousefi says: “Today’s MPC decision to maintain the base rate at 5.25 per cent will come as a welcome relief to borrowers, but many market analysts will view this […]

Skandia denies retreat from SSAS

Skandia has rejected claims that it plans to leave the market for small self-administered schemes after telling clients its SSAS will no longer benefit from small scheme exemptions.The company says provisions in the Pensions Act 2004 have changed the definition of a small scheme. This means it has to appoint an independent auditor for schemes […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com