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FCA publishes a ‘Fee Rate Movements 2025/26’ web page

Link(s):FCA fee rate movement 2025/26 | FCA

Context

Following the publication of its 2025/26 Fees and Levies Policy Statement on 1st July, the FCA has now published a web page setting out reasons and rationale for fee rate movements this year, compared to last year.  Overall, the FCA’s Annual Funding requirement (AFR) has increased in 2025/26 by 3.8%. The fee rate movements for each fee-block broadly reflect this percentage increase (adjusted for other factors) and the change in total tariff data reported by firms.  

Firms’ actual fees are based on the volume of business (the tariff data) they have reported, so reporting a large change in tariff data this year will also have an impact on actual fees.  Increases and decreases in rates set out below do not necessarily mean, therefore, that firms’ actual fees payable will move the same way.  This is particularly the case for consumer credit firms, where year-by-year minimum fee increases are still impacting many firms.

Key points to note and next actions

Firms’ actual fees are based on the volume of business (the ‘tariff data’) they have reported, so reporting a large change in tariff data this year will also have an impact on actual fees.  The fee movement information in relation to categories of firms UKGI deals with are as follows:

  • A019 general insurance distribution – an 8.3% rate decrease – despite the AFR increasing by 2.4%, the 11.5% increase in tariff data has resulted in the fee rate being reduced by 8.3%.
  • A022 Principal firms – Appointed Representatives – a 5.0% rate increase – due to tariff data reducing by 1.6% and the AFR increasing by 3.0%, the rate has increased by 5.0%.
  • A023 funeral plan intermediaries and funeral plan providers – a 7.0% rate increase – although the AFR has only increased by 0.9%, due to the 18.5% reduction in tariff data, the rate has increased by 7.0%.
  • CMC claims management companies – a 15.5% fee rate increase – due to the AFR increasing by 3.1% and tariff data reducing by 9.4%, the fee rate has increased by 15.5%.
  • CC01 credit-related regulated activities – Limited Permission firms – a 12.7% rate decrease – despite the AFR increasing by 2.3%, due to an increase of 14.8% in tariff data and the planned phased increase in minimum fees, the rate has been cut by 12.7%.
  • CC02 Credit-related regulated activities for firms with ‘full’ consumer credit Permissions – a 12.8% rate decrease – despite the AFR increasing by 2.3%, due to an increase of 14.8% in tariff data and the planned phased increase in minimum fees, the rate has been cut by 12.8%.
  • Consumer credit fee increases are explained in a separate section, with a table showing the revised structure of minimum fees.

The FSCS AFR has increased for 2025/26 to £356.0m, up 34.3% from £265.0m in 2024/25