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The FCA has published its fees proposals for 2022/23

Dec 2, 2021 | FCA

Link(s):FCA sets out fees proposals for 2022/23 | FCA

Context

The FCA has announced that it has published a its annual Fees Consultation Paper, CP21/33: Regulatory fees and levies proposals for 2022/23, which sets out the Regulator’s proposed policy changes to the way it will raise FCA fees from 2022/23.  This seems to be more than the usual annual ‘this is what we think we will need to charge’ consultation.

Key points to note

  • The FCA has proposed changes to the fees financial services firms pay to cover the cost of regulation.
  • The FCA has committed to invest £120 million over the next three years to strengthen its ability to identify firms and individuals of concern. These changes are designed to benefit both consumers and firms.
  • The minimum fee, which has remained largely unchanged over the last decade, would increase from £1,151 to £2,200. The FCA believes that the fee increase would better reflect the costs associated with the authorisation and supervision of 51,000 firms throughout the UK.
  • In addition, the FCA is proposing changes to the calculation of consumer credit firm fees to bring them more into line with other firm fees.
  • The Consultation period closes on 31st January 2022, after which the FCA will consider all feedback received with a view to implementing changes in time for the 2022/23 fee cycle.
  • Chapter 2 presents a model for calculating minimum fees in the A fee-blocks and proposes integrating consumer credit firms with the minimum fees and prudential charges of A-block firms.
  • Chapter 4 presents other fees policy proposals – reporting arrangements for pre-paid funeral plan firms and the extension to them of the annual charge for approved persons; an uplift to the application fees of recognised overseas investment exchanges which intend to use new and untried IT; and two technical drafting clarifications to the FEES handbook.
  • Chapter 5 discusses the FCA’s approach to recovering the costs of projects which bring new types of firm into its regulatory scope following changes in legislation.

Next actions

None – for information and awareness, but firms should review the proposals in the Consultation and respond if they feel it is appropriate to do so.