| Link(s): | PS24/5: FCA regulated fees and levies 2024/25 | FCA PS24/5: FCA regulated fees and levies 2024/25: feedback on CP24/6 and ‘made rules’ Fees and levies | FCA |
Context
The FCA has published the final regulatory fee and levy rates for 2024/25for both the FCA and the Financial Ombudsman Service. The FCA has also provided feedback on Consultation Paper CP24/6, to which it received only 22 responses, by publishing the Policy Statement PS24/5.
Key points to note and next actions
Firms the final regulatory fees and levy rates apply to all FCA fee-payers and any businesses considering applying for FCA authorisation or registration.
The Policy Statement confirms the FCA’s 2024/25 Annual Funding Requirement (AFR) of £755m (a 10.7% increase on last year), and an increase of 8.75% in the ‘ongoing regulatory activities’ (ORA) budget.
The key proposals in the Consultation included:
- increasing minimum, flat rate, and application (including transaction and notification) fees, in line with the increase in our ORA costs (8.75%);
- resuming staged increases for A-block and consumer credit minimum fees;
- Ombudsman Service general levy rates for industry blocks for 2024/25; and
- The planned staged uplift in Consumer Credit firms’ fees will remain in place (see Table 2.2 in the Policy Statement).
The total fees for certain fee blocks will increase as follows:
- General insurance mediation – up from £37.4m to £38m, an increase of 9.3%;
- Consumer credit Limited Permission – up from £9.5m to £11.2m, an increase of 18.0%;
- Consumer credit full Permissions – up from £49.1m to £57.9m, an increase of 18.0%;
- Funeral Plans – up from £1.7m to £1.8m, an increase of 9.2%.
The FOS case fee has been reduced from £750 to £650.
There are across the board increases in application fee category rates, now ranging from £270 (category 1) to £217,500 (Category 10).
The annual fees for Appointed Representatives and Introducer Appointed Representatives have increased to £289 and £87 respectively.
Firms can use the FCA online fees calculator to calculate their individual fees based on the final rates in this Policy Statement. The online Fee Calculator is a tool to help firms estimate their annual regulatory fees & levies. It is for guidance only, and firms should always pay the exact amount shown on their FCA invoice. The FCA will invoice fee-payers from July 2024 onwards for their 2024/25 periodic fees and levies.