Advisers’ regulatory costs to increase by 30% as part of the Financial Conduct Authority’s (FCA) GBP432 million budget for 2013/14, according to Apfa estimates.
Out of the total GBP432 million FCA budget, the industry will pay GBP391.5 million, following GBP40.6 million in retained FSA fines to reduce the amount paid by the industry in fees. Approximately 30% will be paid for by investment advisers, mortgage advisers and general insurance brokers, the business plan suggests.
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Apfa policy director Chris Hannant said: "The precise details of the FCA’s budget for the next year are not yet clear. However, our initial calculations suggest there will be a big hike in fees for all types of intermediaries, potentially up to a 30% rise.
"While we do not know the breakdown, this could come as a further blow to advisers already dealing with the impact of the wider economic environment and the costs of RDR. It is particularly disappointing that firms are still unsure exactly what their total bill will be for next year."
The FCA will publish a paper setting out the fees firms will pay. Combined with the GBP38.6 million paid for by advisers that hold client money, the GBP14 million paid by home finance providers and mortgage advisers, and the GBP23.3 million by general insurance brokers, advisers, in 2012, paid a total of GBP113 million towards the FCA’s annual budget.
Many firms were shielded from higher regulatory costs last year as they fell into the A-fee-block, which means they only had to pay the minimum fee of GBP1,000. Overall 42% of firms in the A-fee-blocks only pay the minimum fee.
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By GlobalData
