Proposed Fee Increase
The FCA has recently published Consultation Paper CP21/33, which looks at the regulators’ proposed policy changes to the way that they will raise regulatory fees from 2022/23. The consultation and option to provide feedback is open until 31st January 2022, with responses feedback being expected in March 2022 and the final rules and fees being published in the Summer.
The FCA do not receive any external funding, with their only source being the fees charged to, and fines levied upon the firms that they regulate. The FCA propose to increase the minimum fees that currently apply to regulated firms. All fee blocks would see an increase on the minimum fee, which the consultation paper sets out in more detail.
Significant Fee Increase for Smallest Firms
The proposed increase in the minimum fee for each block would see a significant jump for the smallest firms. However, the FCA note in their paper that the believe the proposed model is the most realistic way of ensuring that all firms contribute towards the overall cost of being regulated.
CP21/33 notes that some of the costs of being regulated are attributed to: –
- Regulatory reporting
- Supervision Hub (previously Customer Contact Centre)
- Unrecovered authorisation costs: –
- authorising firms
- dealing with variations of permission
- registering appointed representatives
- vetting approved persons