View more on these topics

TSC piles pressure on FCA to repay £118m overcharged in adviser fees

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.

In November, Money Marketing revealed the A13 fee block had been overcharged by £118m over the past five years, after the regulator admitted there was an “anomaly” in the way the adviser fee blocks interact with each other. It meant advisers in the A13 fee block, relating to advisers who do not hold client money, have been paying a higher fee per £1,000 of income than A12 firms which hold client money despite requiring less regulatory scrutiny.

Speaking at the Treasury select committee this week, 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.

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.”

Highclere Financial Services partner Alan Lakey says: “This is a clear miscarriage of justice and any reasonable body would put it right. If a big bank overcharged its customers to this extent the FCA would force them to put it right.”

Evolve Financial Planning director James Norton says: “If we do something wrong then we put it right even if it costs us money because it is the right thing to do. These are huge sums of money and it feels inherently wrong and unfair.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm