Fee hikes of 160 per cent have been reported as the impact of the regulator's latest bills go under the microscope.
As part of Financial Adviser's #KeepFeesFair campaign, senior reporter Rachel Mortimer commissioned research into advice firms, their historic and most recent fees, and the amount of business they have brought in.
The results revealed that firms have seen significant increases in the levy they have to pay to the Financial Services Compensation Scheme, regardless of how much money they have brought in.
In fact, some firm's revenue remained unchanged from their revenue in 2018-19 as a result of Covid-19 - and yet their fees have been increased by the Financial Conduct Authority, without any consideration for the difficult year many firms will have had as a result of the lockdown.
Elsewhere in Financial Adviser, our letter-writing campaign on fees received a fillip as not only did cabinet ministers, such as Priti Patel get involved with challenging HM Treasury on ensuring an "effective regulator", but also the Treasury and the Financial Services Compensation Scheme acknowledged they have been receiving letters from advisers and from constituency MPs.
The bodies also stated they were prepared to continue discussions with the regulator about the structure of the funding levy going forward.
The FCA also asked for the industry’s input on what more the regulator could do to ensure the ‘polluter pays’ for unsuitable advice as part of its call for input into the consumer investment market.
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Until we meet again in person, take care
Simoney Kyriakou
To find out more about our #KeepFeesFair campaign, email simoney.kyriakou@ft.com
