The Association of Professional Advisers (APFA) has today urged the Financial Conduct Authority (FCA) to re-think its proposal of fees for the coming year, claiming that advisers were hit disproportionately hard.
APFA said the proposed fees, which allocated a 10% share to be shouldered by advisers in the 2013/14 budget, were disaligned with the risk the sector posed.
APFA director general Chris Hannant said: "Following the implementation of RDR, the risks to consumers from the advice sector have reduced - that was a key objective of the RDR. It seems odd therefore that there has been no corresponding fall in advisers' fees."
"The FCA also needs to take account of the fall in adviser numbers we've seen, not least because with fewer advisers now - 25% fewer by the FCA's own measure - less resource is arguably needed to supervise those who remain."
Under the proposals, financial advisers are set to pay £39m, more than life companies, general insurers or mortgage lenders.
APFA chairman John Gummer, Lord Deben, said he would be writing to FCA CEO Martin Wheatley and MP Andrew Tyrie to raise APFA's concerns over the proposed fee allocation.
Hannant added: "We're pushing the FCA hard to look again at the way it is apportioning costs this year, and we've encouraged members to raise this too.
"As things stand, advisers look set to shoulder a disproportionately large amount of the fees, an amount which doesn't even tally with the FCA's own assessment of risk. We want a clear commitment from the FCA to look again at its fee allocations as a matter of urgency."
Overall the annual funding requirement for the FCA was set at £432.1m over the coming year and the combined FCA/Prudential Regulation Authority (PRA) funding will total £646.3m - a 15% increase on last year.
The FCA said the main reasons for the 15% increase in total combined FCA and PRA 2013/14 funding (compared to the FSA last year) were the costs of increasing front line supervision staff, an increase in Information Technology (IT) costs and an increase in central support services costs.
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