FCA consults on its regulated fees and levies proposals for 2021/22

The FCA has issued a consultation paper (CP21/8) on its proposed fees and levies for the next financial year.

The consultation covers the FCA’s periodic fee rates and other fee policy proposals for the 2021/22 financial year – as well as funding for the Financial Ombudsman Service, the Money and Pensions Service, Devolved Authorities, and the Illegal Money Lending Teams.

The regulator notes that its ongoing regulatory activities budget has seen a 5.5% increase, to £578.4m, while its annual funding requirement has increased 4.5% to £616.5m.

One proposal is for an insurer fee to recoup £7.5m of the regulator’s legal costs from the BI test case. It anticipates this will affect 295 insurers and 50 managing general agents

Another proposal is to introduce a flat periodic fee of £250 payable by Principal Firms for each of their Appointed Representatives.

The regulator is proposing an increase to the minimum fees payable by consumer credit firms. Those for limited permission firms would be raised to £250, £500 and £750, while full permission firms’ minimum fees would increase to £750, £1,000 and £1,151.

The paper also includes proposed fees for funeral plan providers, soon to be brought under FCA’s regulation. These include application fees in two fee brackets of £10,000 and £2,500.

Anyone wishing to respond to the consultation has until 25 May to do so.

For further details on this story, or any other compliance-related topic, contact our expert team on 01925 767888, or email helpline@ukgigroup.com.

 

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