The Investment Association has raised fees for small member firms to cope with the “considerable increase in regulatory and lobbying costs”.
The trade body, which recently disbanded its regulatory affairs unit to cut costs, has written to a number of its members to explain the fee move, which will apply to both full and sector members.
An Investment Association full member firm, which has assets under management of less than £100m, told Fund Strategy its fees will increase by around 20 per cent, from £10,500 to £12,500.
In a letter sent to the firm, the Investment Association states: “We are confident that this increase still represents outstanding value for money for smaller members.”
The Investment Association also says it plans to make “efficiency savings” across the trade body to cover the costs associated with its office relocation from its current base in Holborn to the City.
However, the head of compliance of the member firm, who wished to remain anonymous, says: “We are happy with the move as the cost of the Investment Association membership is good value for money.”
The Investment Association declined to comment on the fee hike.
The restructuring of fees is the latest move by the Investment Association as the trade body is reorganised following a member revolt last year, which led to the exit of chief executive Daniel Godfrey.
In December, the organisation restructured to focus around three core units.
Later last month it was revealed asset managers M&G and Schroders would not be leaving the organisation, having previously said they would quit.
The two firms gave the Investment Association a six-month reprieve after which they would consider their membership.