FCA axes MAS fees reduction proposal

Nicola Brittain
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The Financial Conduct Athority (FCA) has axed a proposal to cut the fees advisers pay towards the Money Advice Service (MAS) by 94%, and instead will reduce them by just 42%.

The original proposal made by the MAS and outlined in January's consultation document (CP13/2), suggested that fees should be paid according to the way the service is used. This would have replaced the current method whereby fees are raised according to the FCA's funding blocks. Adviser MAS fees have consequently dropped just 42%, from £4.6m to £2.7m, rather than the 93% drop to £300,000 as was proposed in CP13/12. The proposal was overturned because advisory bodies and those representing building societies expressed concerns about the short notice given to the industry. The new...

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