The FCA has published a consultation paper on proposed policy changes to the way its fees will be calculated from 2022/23. The paper includes proposed increases to the fees financial services firms pay to cover the cost of regulation.
In the April 2021 fee consultation, the FCA said it would undertake a review of the fees structure, including minimum fees, as part of the FCA’s Transformation Programme. In describing this programme, the FCA has stated:
“ … as part of its transformation to a more innovative and assertive regulator, the FCA has committed to invest £120 million over the next three years to strengthen its ability to identify firms and individuals of concern. These changes are designed to benefit both consumers and firms.”
The proposed fee changes in the consultation are intended to better reflect the costs associated with the authorisation and supervision of 51,000 firms throughout the UK. The minimum fee, which has remained largely unchanged over the last decade, would increase from £1,151 to £2,200.
The FCA will consider all feedback received on the consultation and expects to implement changes in time for the 2022/23 fee cycle. All feedback is welcomed – have your say. You can read CP21/33 here.
In addition, the FCA is proposing changes to the calculation of consumer credit firm fees to bring them more into line with other firm fees.