The Financial Conduct Authority has reversed plans for FCA-regulated firms such as advisers to take on most of the FSA’s £200m pension deficit, with banks and insurers regulated by the Prudential Regulation Authority now sharing more of the burden.
In October last year, the FSA proposed that the cost of reducing its final salary scheme deficit be paid for only by FCA-regulated firm fee blocks, meaning dual regulated firms such as banks, insurers and building societies would pay far less than they currently do.
The regulator has decided not to pursue this option, which would have led to extra costs for FCA-only regulated firms, and will instead weight contributions across all firms.
“We have proceeded with the weighting option as it is nearest to being no change in the sharing of the cost burden across fee-payers,” says the FCA.
The FSA also made an additional one-off contribution of £22m towards the deficit, which has been inherited by the FCA.
Informed Choice managing director Martin Bamford says: “It would have been unfair to load even more costs onto advisers, although I would rather not have to pay anything towards the regulator’s pension deficit.”