FT Adviser (19/07/2019) – Advisers have seen a marked increase in their annual regulatory bill, despite fees from the Financial Conduct Authority dropping slightly this year.
In April the financial regulator announced advisers would see the amount they contribute towards the FCA fall in 2019/20, proposing the sector collectively paid £79.4m towards its running costs at a drop of 1.1 per cent on last year’s bill.
This was despite the regulator seeing its costs increase by 2 per cent to £537.7m, which the FCA said met its commitment to keeping its spending flat in real terms.
But as advisers began to receive their regulatory bills for the upcoming year, some were in for a shock.
FTAdviser heard of bills jumping by as much 30 per cent, largely due to increased Financial Services Compensation Scheme costs.
The bill advisers receive from the FCA includes the regulator’s own fees, and also the FSCS levy, which the City-watchdog then passes onto the life-boat scheme, and the Financial Ombudsman Service levy.
FTAdviser understands the bill sent out by the FCA includes a drop in the regulator’s own fees and those of the Money and Pensions Service, but an increase in rates for the Fos, pensions guidance and FSCS – with some firms potentially facing an increase of 113 per cent in FSCS costs.
Alan Chan, director at IFS Wealth & Pensions, said his firm had not yet received its bill but he expected a significant increase following an almost 30 per cent rise last year.
Mr Chan said: “I can’t ever see it coming down. The FSCS is without doubt the highest levy within the regulatory fees and has been for years, closely followed by the FCA’s own fees.
“To me, this is a clear sign of regulation failure if both these costs are equally high.”
Full article link: https://www.ftadviser.com/your-industry/2019/07/19/advisers-regulatory-bills-grow-despite-fca-fee-drop/
