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Small firms get fee respite

Over 10,000 small firms will pay lower regulatory fees than last year.

These smaller firms will have their minimum FSA fees frozen at 2008/09 levels.

All firms will benefit from a 6 per cent decrease in fees due to the large sums of money the FSA has collected in fines in the past year, so smaller firms will see a reduction in fees.

But speaking to Money Marketing, FSA chief operating officer David Kenmir says a firm with 636 appointed representatives will face a 17 per cent hike in FSA fees this year.

He says: “This figure is after the discount is applied. Firms must also take into account the Financial Services Compensation Scheme and Financial Ombudsman levies.”

Highclere Financial Services partner Alan Lakey says: “Forget the breakdown, it is the overall figure of FSA, FSCS and FOS fees that matters.

“The combination of the RDR, the economic crisis and the increased regulatory fees are going to wipe a lot of firms out. If we end up with fewer advisers, there is going to be even more of a burden on those remaining to cover the cost of regulation.”

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