FCA fees proposal document
The FCA is proposing to increase advice firms’ regulatory fees by 2.8% from April next year.
The proposal is contained in a fees consultation document (CP25/7) published today.
The funding requirement for fee-block A.13, which includes advisers, arrangers, dealers and brokers, has increased by 3.4%, from £103m to £106.5m.
But the change in fee rates for the estimated 10,023 firms in A.13 is proposed to be 2.8%.
The FCA said its annual funding requirement (AFR) to deliver its planned programme of work for 2025/26 was £783.5m.
That includes £3.7m to be allocated to work related to the Advice Guidance Boundary Review and £1.1m to be allocated to work related to Pensions Dashboards, according to the consultation document.
The FCA has also allocated £3m for the cost of its work in 2025/26 developing the regulatory regime for ESG ratings providers.
It said its base ongoing regulatory activities (ORA) budget is increasing by 2.5%, some 6.25% less than last year’s increase.
It has also proposed uplifting its minimum and flat rate fees for 2025/26 by 2.5% in line with its ORA.
The minimum fee, paid by smaller adviser firms, will be £2,000 in 2025/26 and rise to £2,200 in 2026/27. The minimum fee is currently £1,750.
It said the amount it collects in 2025/26 will be reduced by the financial penalty revenues retained from 2024/25. It estimated the financial penalty rebate for 2025/26 will be £70.5m.
Firms can use the FCA’s online Fee Calculator to estimate their fees for 2025/26.
The FCA has asked for comments on its consultation paper by 13 May. Interested parties can respond at the regulator's online form.
The FCA also accepts written comments sent to Fees Policy, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN or emails sent to This email address is being protected from spambots. You need JavaScript enabled to view it.
The FCA said it plans to publish a Policy Statement (PS) in early July which will include its feedback on comments and the final rules.
