Treasury select committee chairman Andrew Tyrie says there are still “concerns” about the FCA’s overcharging of the adviser fee block.
In December last year, the FCA merged the A13 fee block – which relates to advisers who do not hold client money – with the A12, a separate fee block for advisers, dealers and brokers who hold client money.
It meant A13 advisers were overcharged £118m over five years.
In February, Tyrie quizzed FCA chairman John Griffith-Jones about the overcharging and Griffith-Jones wrote to the TSC, with the letter published in August.
In the letter, Griffith-Jones says: “I have looked into the matter and am content that no firms were overcharged. I am also satisfied that by consulting on an annual basis, our processes for calculating fees are transparent.
“While creating a new fee block does lead to winners and losers in the short-term, I do not believe this means that some firms have been historically ‘overcharged’ any more than others have been undercharged.”
Speaking to Money Marketing, Tyrie says: “In correspondence, the FCA flatly rejected accusations of ‘overcharging’ investment intermediaries. Nonetheless, there remain concerns that some firms may have paid more for less supervision than others with similar income levels.
“It is unclear, however, to what extent this is the case since income levels per firm in both blocks is unknown. The new fee block should operate in a more transparent way.”