Advisers’ regulatory levies to rise 4%
By Katie Marriner & Justin Cash
Advisers’ regulatory levies will increase by just over 4 per cent in 2018/19, the FCA has confirmed.
The regulator has announced its final fees statement today with the A13 funding block, which includes advisers, fielding £80.3m in levies, up from £77.1m in 2017/18.
The increase is proportionally greater than for life and general insurers, for example, which have both seen a 3.2 per cent increase in funding, but is around the same as the 4 per cent increase for portfolio managers and less than the 5.1 per cent increase handed to corporate finance advisers.
While the FCA collected less than it planned to in penalties from badly behaving firms – £47m compared to the £48.2m it estimated in April – it was still able to use £4m to offset the advice block’s fees.
The FCA’s overall annual funding requirement is £543.9m, an increase of 3.2 per cent.
The FCA board approved the 2018/19 total annual budget of £289.8m for the Financial Ombudsman Service in March. While the majority of the FOS’s income comes from case fees, it asked the FCA to recover £24.5m by general levy.
The FCA policy statement says there has been no change to the Money Advice Service budget for 2018/19 since its earlier consultation so the regulator will collect £83.1m.
The FCA says the Department for Work and Pensions has notified it the final 2018/19 Pension Wise funding requirement is £16.9m, down from £20.3m, which was estimated in the consultation paper.