In its November fee consultation paper, as highlighted in our News article of 27th November 2023, the FCA proposed to change the way certain consumer credit firms calculate the proxy measure of income, updating its CCR002 and CCR007 help pages accordingly. This change may reduce the periodic fee certain firms pay from 2024/2025 onwards.
We are aware that the FCA has been contacting firms that use proxy measures to report their regulated consumer credit income, to encourage them to resubmit the data using the new calculation. The new calculation is published in the associated guidance for CCR002 and CCR007.
Firms should no longer include the Bank of England base rate as part of the proxy measure calculation, and just use the 5% element as the multiplier when calculating annual income for question 6 on CCR007 or question 12 on CCR002.