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UK advisers face 5% fee hike

18 Apr 17

The Financial Conduct Authority has proposed a 4.7% hike in fees for advisers and brokers as part of its 2017/18 business plan.

The Financial Conduct Authority has proposed a 4.7% hike in fees for advisers and brokers as part of its 2017/18 business plan.

In the proposals published Tuesday, the FCA outlined an annual funding requirement for the year of £526.9m ($661.3m, €621.9m), an 1.5% increase of £7.6m over 2016/17.

It said this increase will cover the costs of changes to its regulatory scope; Payment Services Directive (PSD) 2 implementation costs; and reducing its pension deficit.

It is also budgeting £2.5m for EU withdrawal.

The FCA said it must raise £77.1m from adviser fees next year, compared to a £73.7m spend in 2016/17.

The FCA also plans to raise £12.3m from fund managers and depositaries, and operators of collective investment schemes, representing a 4.3% increase.

The total budget for the Money Advice Service is £75m, which is the same as last year.

However, as a result of consumer credit contributions collected from last year, as well as the anticipated consumer credit contributions, £64.1m will be levied as opposed to £75m.

Two separate levies are being proposed to raise £23.1m for delivering money advice, and £41m for coordinating and providing debt advice.

 

Tags: FCA | Fees | Levy | Money Advice Service

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International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.