Context
The FCA is consulting on proposed policy changes to the way in which it will raise fees from 2021/22. The consultation applies to any business considering applying for FCA authorisation and any existing fee-payers which may vary their permissions, are considering a change in control or are making appointments which are subject to the Senior Managers Regime.
The consultation paper can be viewed here: https://www.fca.org.uk/publication/consultation/cp20-22.pdf
Key points to note
- The FCA proposes to revalorise (change the valuation of) and simplify all FCA authorisation application fees and introduce some new transaction fees
- The FCA proposes to create 10 fee paying categories ranging from £250 for a firm in category 1 to £200,000 for a firm in category 10
- Firms carrying out general insurance distribution are in category 4 which equates to a fee of £2,500
- Firms carrying out credit related regulated activities (limited permission) are in category 2 which equates to a fee of £500
- The FCA proposes to remove income bandings from application fees
- There are also proposals to introduce a Category 4 fee of £2,500 for claims management companies that apply only for the permission of seeking out people who may have a claim
Next actions
Firms can respond to the consultation, the deadline for which is 22nd January 2021, via the online response form https://www.fca.org.uk/cp20-22-response-form or via email to cp20-22@fca.org.uk