Financial advisers will pay 13 per cent more in fees to the regulator for 2013/2014, the Financial Conduct Authority has confirmed.
In its policy statement published late last week (28 June) the FCA confirmed it will set a total annual funding requirement (AFR) of £432.1m.
Combined with the £214.2m required by the Prudential Regulation Authority, total cost of regulation is set to rise 15 per cent to £646.3m, up from £559.8m the previous year.
This rise was first mooted publicly in April of this year, and last week’s policy statement reveals they have followed through with their plans despite protests from the industry.
The FCA said: “We recognise that the increase in fees... comes in addition to similar levels of increases in recent years under the [Financial Services Authority]. We also recognise that this is happening during a period of very difficult trading conditions for firms that themselves are making tough decisions to cut costs.”
However, it argued that the £432.1m is necessary to achieving the business plan it set out when it came to power.
Despite paying 13 per cent more to the regulator than previously, most financial advisers - those in the fee-block A.13 - will bear 9 per cent of the total AFR this year. Deposit acceptors will take on the largest slice, paying 13.9 per cent of the cost of FCA regulation.