| Link(s): | CP26/11: FCA regulated fees and levies: rates proposals for 2026/27 | FCA CP 26/11: FCA regulated fees and levies: rates proposals for 2026/27 |
Context
The FCA has published its fees and levies Consultation for 2026/27. The FCA is proposing to increase minimum and flat rate fees, as well as application fees, by 1%. This is in line with the increase in the FCA’s Ongoing Regulatory Activities (ORA) budget (1.1%). This is the lowest rise in the ORA fees budget since 2017/18 and the lowest AFR increase in a decade. The 0.7% AFR increase reflects what the FCA needs to collect from firms in fees. The budget sets out how that funding is allocated across the FCA’s ongoing regulatory work, exceptional projects and core operating costs. In 2026/27, this is £788.9m, £5.4m more than last year.
Key points to note
- The FCA’s annual budget is driven by its core operating activities (the ORA), the exceptional projects it undertakes, and capital expenditure to develop technology and information systems and implement new regulatory and operational requirements.
- To keep fee increases to a minimum, we have kept our budgeted headcount flat, which accounts for around two-thirds of our costs, and have looked to absorb inflationary increases and cost uplifts by finding efficiencies and identifying savings in our budget.
- The actual fees we levy will reflect the AFR net of rebates from financial penalties we collect (forecast at £72.8m). Find out how to calculate your annual fee.
- Individual fee blocks – proposed annual levies.
- General insurance distribution – a proposed annual levy of £39.4m, representing a £0.5m (1.4%) increase on last year.
- Consumer credit firms will see an increase of 1.6%.
- Funeral plan intermediaries and providers will see an increase of 0.8%.
- Principal firms will see an increase in the AR / IAR levy of 4.6%.
- Minimum and flat-rate fees will increase by 1%.
- Application, transaction and notification fees will increase by 1%, in line with the increase in the ORA, rounded to the nearest £10.
- The FCA is asking for comments on this CP by 30 April 2026. Firms can use the online response form.