Treasury select committee chair Andrew Tyrie says there is a “strong case” for the FCA to compensate advisers after they were overcharged by £118m in regulatory fees.
Speaking at the Treasury select committee today, FCA chief executive Martin Wheatley refused to accept advisers had been overcharged.
When quizzed on the issue, FCA chairman John Griffith-Jones told MPs he did not know anything about it.
Last October the FCA admitted an “anomaly” in the way the A13 block – which relates to advisers who do not hold client money – interacts with A12, a separate fee block for advisers, dealers and brokers who hold client money.
It means A13 advisers have been paying a higher fee per £1,000 of income than firms which hold client money despite requiring less regulatory scrutiny.
Last November, Money Marketing calculated that the A13 fee block had been over-charged by £118m over the past five years.
Tyrie highlighted the Money Marketing research when questioning Wheatley this morning on why he was not compensating advisers.
Tyrie said: “On the basis of the information put to me there is a strong case for compensation in returning this money, a strong case.
“This money clearly should not have been charged once you look into the detail of it. These firms have clearly been put at a disadvantage. Their customers have been charged more than they should and their shareholders have suffered too. I am surprised you are so firm this is not overcharging.”
Tyrie said he was “very concerned” Griffith-Jones did not know about the overcharging and called on him to review Wheatley’s decision and write to him with his conclusions.
Wheatley said: “I think the term overcharged is wrong. We make decisions each year as to what we charge each fee block and we adjust them each year depending where our efforts and resources are used.”