The FCA should be forced to freeze its fees for the duration of a parliament, Sir Alan Meale, Labour MP for Mansfield, has said.
Sir Alan has already tabled a motion to freeze FCA fees for two years after several IFAs in his constituency approached him about the impact of FCA fees on their business, but said he would amend this to five years if his proposal gained enough support.
In an interview with FTAdviser, Sir Alan said: “I had a group of financial advisory companies within my constituency come to see me. They outlined the cost to individual investors that various charges had. These levies had been increasing over the last few years.
“I took the information away and looked at it, got them in to see me again and it was clear there had been a huge surge in fees.”
He said protection for consumers was vital but not when it added such a significant sum to the cost of advice that investors with small sums of cash can no longer afford the help of an IFA.
So far the early day motion has been backed by Peter Bottomley, Conservative MP, Mark Durkan, Social Democratic and Labour Party MP, Margaret Ritchie, a Social Democratic and Labour Party MP and Jim Shannon, for the Democratic Unionist Party.
Chris Hannant, director general of Apfa, said the trade body backed the motion and would encourage advisers to lobby their local MPs to get them to support it.