Monday, 31 March 2014 09:46
Nearly £15m rise in cost to fund FCA
The Financial Conduct Authority's annual funding requirement will rise in 2014-15 to £446m.
The regulator's annual business report released today showed its proposed funding requirement will go up by £14.3m from £431.7m.
The largest chunk of the fees will come from intermediaries who will pay 31.3%.
Fund managers and operators of schemes will pay 12.7%.
The regulator said the extra £14.3m comes down to these year-on-year movements:
• £6.3m ongoing regulatory expenditure budget increase (1.4%) driven by its new competition team to deliver a new competition objective
•£1.1m increase in scope change recovery costs
•£2.6m reduction relating to regulatory reform costs
•£9.5m increase relating to the differences in underspends returned
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The FCA's proposed budget for 2014-15 will also go up to £452m, an increase from £445.7m. The biggest expense in the budget is staff costs, which will rise from £261.3m to £263.8m
The FCA said in its report: "Our annual budget reflects the cost of the resources we need to deliver our vision and objectives in 2014/15.
"The key elements of our budget are the cost of our core operating activities, the largest element of which is our people, the total amount we charge the industry to fund our plans, the development of our information systems to deliver new regulatory and operational requirements.
"And the costs of delivering the new consumer credit regime and setting up the new Payment Systems Regulator."
The FCA said it had "delivered on the public commitment to keep FSA legacy costs at the same level as last year, despite our need to continue to upgrade and improve our information systems".
Along with the business plan, the FCA has launched a consultation on the proposed 2014/15 regulatory fees and levies for the FCA, the Financial Ombudsman Service (ombudsman service) general levy, and the Money Advice Service.
The Money Advice Service's total funding requirement for 2014/15 is £81.1m. Two separate levies are being
proposed to raise:
•£43m (£43.8m in 2013/14) for delivering money advice
•£38.1m (£34.5m in 2013/14) for the coordination and provision of debt advice
The regulator's annual business report released today showed its proposed funding requirement will go up by £14.3m from £431.7m.
The largest chunk of the fees will come from intermediaries who will pay 31.3%.
Fund managers and operators of schemes will pay 12.7%.
The regulator said the extra £14.3m comes down to these year-on-year movements:
• £6.3m ongoing regulatory expenditure budget increase (1.4%) driven by its new competition team to deliver a new competition objective
•£1.1m increase in scope change recovery costs
•£2.6m reduction relating to regulatory reform costs
•£9.5m increase relating to the differences in underspends returned
{desktop}{/desktop}{mobile}{/mobile}
The FCA's proposed budget for 2014-15 will also go up to £452m, an increase from £445.7m. The biggest expense in the budget is staff costs, which will rise from £261.3m to £263.8m
The FCA said in its report: "Our annual budget reflects the cost of the resources we need to deliver our vision and objectives in 2014/15.
"The key elements of our budget are the cost of our core operating activities, the largest element of which is our people, the total amount we charge the industry to fund our plans, the development of our information systems to deliver new regulatory and operational requirements.
"And the costs of delivering the new consumer credit regime and setting up the new Payment Systems Regulator."
The FCA said it had "delivered on the public commitment to keep FSA legacy costs at the same level as last year, despite our need to continue to upgrade and improve our information systems".
Along with the business plan, the FCA has launched a consultation on the proposed 2014/15 regulatory fees and levies for the FCA, the Financial Ombudsman Service (ombudsman service) general levy, and the Money Advice Service.
The Money Advice Service's total funding requirement for 2014/15 is £81.1m. Two separate levies are being
proposed to raise:
•£43m (£43.8m in 2013/14) for delivering money advice
•£38.1m (£34.5m in 2013/14) for the coordination and provision of debt advice
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