Financial penalties retained by FCA used to cut fees

The move could result in advisers' overall fee demand being cut by about 10%, consultation documents showed. Financial penalties, it said, must be paid to the Treasury net of certain enforcement costs incurred. These costs are known as ‘retained penalties' and must be used "for the benefit of firms". Advisers could see their overall fee demand cut by 10.2% if the plans go ahead. During 2012/13 the Financial Services Authority received £381.8m in financial penalties from enforcement activity. The retained penalties for 2012/13 amounted to a total of £40.6m. The rebate for adviser...