It’s regulatory fees and levies for 2010/11, published today, show that the minimum fee for the smallest IFA firms will fall from £1,850 to £1,000.
The FSA says of the medium to large firms who pay the minimum fee plus a straight-line fee, 90 per cent will pay less in 2010/11, with 10 per cent facing an increase.
Mortgage brokers face a 32 per cent hike in their annual funding requirement, up from £10.9m in 2009/10 to £14.4m in 2010/11.
General insurers will see fees fall 14 per cent to £30.8m in the next financial year, compared to £35.9m in 2009/10.
The new minimum fee of £1,000 is an increase of 34 per cent for mortgage brokers and 122 per cent for GI firms.
The FSA’s overall funding will increase 9.9 per cent from £413.8m in 2009/10 to £454.7m in 2010/11.
The FSA says the increase is due to its work on delivering intensive and intrusive supervision, credible deterrence, the regulator’s internal reform programme and EU policy, including Solvency II.
In 2009/10, the FSA hired 280 new staff as part of its supervisory enhancement programme.
The regulator says the full year costs of these staff will be represented for the first time in 2010/11 and equates to a 4 per cent rise in total FSA costs, even if no other investments were made.
The regulator says despite the increase in overall funding, 60 per cent of firms will actually pay less in fees.
FSA chief executive Hector Sants says: “We recognise that any increase in the industry’s costs is unwelcome at a time when margins are under pressure in some segments of the industry. However, the overall increases are necessary to deliver our new intensive supervisory approach.
“The new fee structure will ensure that the costs are fairly distributed and the increased investment is paid for by those firms who will be subject to the increased scrutiny.”
In the paper the FSA also explored changes it was looking to make to its fee structure for intermediaries for 2012/2013. In a previous paper the FSA floated the idea of making the size of the fee dependent on relevant income but a number of respondents raised concerns that they would be paying more, such as networks who would pass this rise on to members.
The regulator says it will make a decision on this in the autumn. It may also look to merge the fee paying blocks of IFAs, those who handle client money and corporate finance advisers, excluding investment managers.