Context
The FCA is consulting on its periodic fee rates and other fee policy proposals for the 2021/22 financial year. It is also consulting on the Financial Ombudsman Service general levy, Money and Pensions Service, Devolved Authorities and illegal money-lending levies.
Key points to note
- The FCA’s Ongoing Regulatory Activities budget has had a 5.5% increase to £578.4m.
- The Annual Funding requirement has had a 4.5% increase to £616.5m.
- The FCA is proposing an insurer fee to recoup £7.5m of the BI test case legal costs; this will affect 295 insurers and 50 managing general agents.
- There are proposals to introduce a flat periodic fee of £250 payable by Principal Firms for each of their Appointed Representatives.
- There are also proposals to increase the minimum fees payable by consumer credit firms. Limited permission would be raised to £250, £500 and £750. Full permission would be raised to £750, £1,000 and £1,151.
- The consultation closes on 25th May 2021.
Next actions
Firms wishing to respond to the Consultation Paper have until 25th May.