IFA levy costs to fall 8% in 2010/11

In its regulatory fees and levies proposals, out today, new minimum fees of £1,000 will also benefit those firms that only pay the minimum, with their costs down by 45%. However, just 4% of IFA firms currently pay the minimum fee.

The FSA also proposes cutting the amount advisers in the A.13 fee-block are charged.

The A.13 fee block, which covers mainly IFA firms, will account for 8.8% of the FSA's total funding in 2010/11, compared to 10.5% in the current financial year.

The firm types hit hardest include A.18 - home finance and mortgage brokers - which will see total fees increase by 33% to £14.4m.

Deposit takers in block A.1 will see fees rise 12% to £130.7m. The increase was widely expected after the impact of the financial crisis and the resulting increase in supervision of banks and building societies.

Life insurers will see their levies fall 4% to £30.7m, while general insurance firms will pay 45% more, largely due to the increased costs of supervision following the implementation of Solvency II.

Outgoing FSA chief executive Hector Sants says: "We recognise that any increase in the industry's costs is unwelcome at a time when margins are under pressure in some segments of the industry.

"However, the overall increases are necessary to deliver our new intensive supervisory approach.

"The new fee structure will ensure that the costs are fairly distributed and the increased investment is paid for by those firms who will be subject to the increased scrutiny."

 

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• Topics
• Regulation
• FSA
• fees
• FSA levy