Small adviser firms should see no increase in their regulatory fees this year, according to the Financial Services Authority.
Some 42 per cent of financial services firms, covering many small adviser firms and intermediaries, will continue to pay the minimum fee of £1,000, the same fee as 2011/12, says the FSA.
The information was detailed in an FSA consultation paper released today (2 February).
The FSA said the bulk of the costs for the annual funding requirements would affect larger firms as they require more intense supervision.
Annual funding requirements for the FSA have increased from £500m to £578m, a 15.6 per cent increase from 2011/12.
This includes £32.5m for the restructuring of the UK’s regulatory framework and £22.4m for modernising the IT infrastructure.
It will also be moving to a twin peaks model ahead of the split into the Financial Conduct Authority and Prudential Regulation Authority.
Hector Sants, chief executive of the FSA, said: “This year to April 2013 is expected to be a challenging one for the FSA. We will be moving to a twin peaks model internally ahead of the split into the PRA and FCA, whilst at the same time continuing to focus on our supervisory role in a very difficult economic environment.
"The FSA will continue to deliver intensive and intrusive supervision and develop key policy initiatives but we are not planning any new discretionary initiatives.
“The principal initiatives are progressing the domestic consumer protection strategy, implementing a number of key EU directives and influencing the continuing international regulatory reform agenda.”
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.