FCA confirms 9.8% rise in adviser fees
The FCA has confirmed that advisers in the A.13 block will see fees rise by 9.8% for 2024/25, according to its final regulatory fee and levy rates.
The rise is significantly above CPI inflation which is currently 2%.
In Policy Statement PS24/5 FCA Regulated Fees and Levies 2024/25, the FCA says it is ending a fee freeze because it needs to invest more in its services.
It says it is increasing fees to expand its regulatory coverage in areas such as crypto assets and funeral plans, invest in better technology and tackle financial crime.
The rise means an A.13 block adviser firm with £500,000 of annual income will pay £3,126.74 including FCA fees, FOS levy, Guidance levy and FSCS levy, according to the FCA Online Fee Calculator.
Across the board, the FCA has confirmed it will raise 14.4% more from fees from all regulated firms as it pushes up its annual funding requirement (budget) by 10.7% to £755m. Crypto assets firms and funeral plan providers will pay significantly more.
The FCA says the increased funding, “supports our investment in people and technology programmes” in line with its three year strategy to focus on priority commitments such as tackling rising financial crime.
The regulator says the extra money will help it work “faster” in protecting consumers from harm and expand in new areas such as crypto and AI. The money will also “encourage innovation” in financial services, it said.
The FCA says it has amended some fees following its consultation on the changes which were outlined in consultation paper CP24/6.
Some respondents to the consultation said the above-inflation increases planned would create more burden on the sector but the FCA said it had a duty to fund its work adequately.
The FCA is using £3m received from financial penalties to offset the A.13 block fees.
PS24/5 covers regulatory fee and levy rates for the Financial Conduct Authority, the Financial Ombudsman Service and levies collected on behalf of government departments. The FCA says it will invoice fee-payers from this month for their 2024/25 periodic fees and levies.
• Firms can use the FCA’s online fees calculator to work our their individual fees based on the final rates.
• PS24/5 can be downloaded here
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