The FSA says proposals to charge firms' variable fees depending on their size are an "appropriate" measure to reflect the amount of work it carries out.
It says under the ‘straight line recovery' method, 90% of firms will pay less in the 2011/12 financial year despite a 10% rise in its annual funding requirement (AFR) to more than £450m. Larger firms will see significant fee increases. The move is for those firms that pay a variable periodic fee on top of the minimum fee, which the FSA today said would be £1,000 for all regulated firms. It proposes the variable periodic fee should increase in direct proportion to the size of a firm - on a ‘straight line' basis. The more permitted business a firm undertakes, the more fees it will pay....
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