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CP21/8: FCA regulated fees and levies: rates proposals 2021/22

Link(s): https://www.fca.org.uk/publication/consultation/cp21-8.pdf

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.