Context
Overall, the FCA’s Annual Funding Requirement (AFR) has increased in 2024/25 by 10.7%. 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. The web page includes a table covering each of the fee blocks with an explanation of the fee movement – a relevant extract is included below.
Key points to note and next actions
Firms’ actual fees are based on the volume of business (tariff data) firms have reported, so reporting a large change in tariff data this year will also have an impact on actual fees. For more information on the fees and levies for 2024/25, please see the 2024/25 Policy Statement, which was covered in our update for the week ending 5th July.
| Fee-Block | Tariff Base | AFR | AFR change from last year | Total tariff data change from last year | Rate change from last year | Explanations |
| A019 General insurance distribution | Annual income | £38.0m | 9.3% | 8.4% | 0.5% | The AFR has increased roughly in line with overall Ongoing Regulatory Activities (ORA) requirement increase. However, this increase is partly offset by an 8.4% rise in tariff data resulting in only a 0.5% increase in the fee rates. |
| A022 Principal firms – ARs / IARs | Number of ARs / IARs | £7.1m | 4.8% | -1.1% | 8.6% | Flat fees for appointed representatives and introducer appointed representatives increased in line with ORA increase of 8.6%. |
| CC01 Credit-related regulated activities with limited permissions | Consumer credit annual income | £11.2m | 18.0% | -6.0% | 8.4% | The AFR has increased by 18%. This is due to the minimum fee increases that were deferred in 2023/24 now happening in 2024/25 (please refer to Chapter 3 of CP24/6), together with additional exceptional project costs in relation to Credit Information Market Study (CIMS) Interim Working Group (IWG). Despite the 18% increase in AFR, the rates have only increased by 8.4% in line with the CC02 fee rate increase. |
| CC02 Credit-related regulated activities | Consumer credit annual income | £57.9m | 18.0% | 8.9% | 8.4% | The AFR has increased by 18%. This is due to the minimum fee increases that were deferred in 2023/24 now happening in 2024/25 (please refer to Chapter 3 of CP24/6), together with additional exceptional project costs in relation to the CIMS Interim Working Group (IWG). This increase in AFR is partly offset by a 8.9% increase in tariff data. |