FCA to raise adviser fees by up to 3%
The Financial Conduct Authority (FCA) has laid out proposals for increasing the fees for home finance providers, advisers and arrangers.
Under the proposals block A.13 would see a 1.6% rise in fees whilst block A.2 would go up by 3%.
However, the regulator said that that 71% of firms “that are small enough to only pay minimum fees will see no change in the fees they pay”.
FCA chair Charles Randell said: “To ensure we continue to deliver on our priorities and meet our objectives, our overall annual funding requirement (AFR) will increase by 5.2% in 2020/21 to £587.6m.
“Given the impact of Covid-19, in apportioning our AFR we have aimed to protect the smallest firms by freezing minimum fees.
“This means that the 71% of firms that only pay minimum fees will see no change in the fees they pay. To help medium sized and smaller firms we are extending the period for paying their fees by two months to 90 days.
“This means that 89% of firms will have until the end of 2020 to pay their fees and levies. Larger firms will be expected to pay their fees under the usual payment terms.”
The FCA has asked firms to respond to the proposed changes by May 19 this year.