Adviser regulatory fees will be reduced from £80.3m in 2018/19 to £79.4m in 2019/20 as the Financial Conduct Authority (FCA) announced a reduction in the amount that the A13 fee block pays.
Despite the cut, the FCA’s overall funding requirement will rise by 2.7 per cent to £558.5m, relating to ongoing Brexit costs and its new regulation of claims management firms. However, advisers will benefit from a fall in costs as claims management companies begin to contribute £7.1m in their first year of regulation.
Furthermore, the regulator has proposed allocating the EU withdrawal costs of £5m across the fee-blocks that include banks, insurers, fund managers and proprietary traders. According to the FCA, the types of firms in these fee-blocks are “most likely to be affected” by the UK’s withdrawal from the EU.
The watchdog was asked to recover £44.5m by the Financial Ombudsman Service, with the idea that the funds will be used to manage the set-up and costs of two new jurisdictions; complaints made by SMEs and complaints about claims management companies.
The FCA announced that it will collect £117.6m for the new Money and Pension Service in 2019/20, which includes £25.9m for money guidance in the UK, £55.8m for debt advice in England, and £35.9m for pensions guidance in the UK. Within the funding for the pensions guidance, the FCA has allocation £4.7m for the pensions dashboard and the overall pensions guidance budget is higher than the £20.3m that Pension Wise received in 2018/19.
The regulator revealed it will allocate MAPS funding to fee-blocks on the same basis it used in 2018/19 for MAS and Pension Wise.
Subscribe to our newsletter to receive breaking news by email.