The FCA has released a proposal alongside its 2018/19 business plan that shows advisory arrangers, dealers and brokers in the “A.13” fee paying block will pay a total of £80.3m (€92m, $113m). This is up from £77.1m in 2017/18 and reflects an increase of 4.2%.
Life insurers will also experience a fee rise of 3.2% from £41.8m in 2017/18 to £43.3m over 2018/19.
In total, the FCA’s funding requirements for the upcoming year are £543.9m, an increase of 3.2%.
Brexit & Mifid II
This increase is due in part to EU withdrawal cost, which the regulator says it has set aside £5m to cover.
It is also due in part to regulatory costs associated with Mifid II, which was introduced to all member states of the EU in January this year.
Money Advice Service
In addition, advisers will collectively pay a further £2.2m towards the UK’s Money Advice Service, up from £1.9m over 2017/18, as the regulator prepares to merge the service with Pension Wise. On top of that, the amount paid to Pension Wise is planned to increase from from £2.1m to £2.4m in 2018/19.
Andrew Bailey, chief executive of the FCA, said: “We recognise that this year we need to dedicate a significant amount of resource to withdrawal from the EU. As a result, setting our priorities this year has involved a particularly rigorous level of scrutiny and challenge to focus on areas where we see the greatest potential for harm.”
