FCA plans to cut adviser fees under fee block reallocation

Carmen Reichman
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The Financial Conduct Authority (FCA) has set out plans to cut regulatory fees by reallocating advisers who have permissions to hold client money or safeguard and administer assets to different fee blocks.

Under the proposed rules adviser fee block A13 will be merged with block A12 before a new block, A21, is formed in April next year. The move will mean a reduction in fees for most advisers of about £4 on every £1,000 earned. The FCA said it was considering the move to remove an anomaly in the fees system which allowed advisers in the A13 block to "lower their fees by taking on the additional permission of holding client money and safe custody assets, even though they do not want it". Under the proposals fee block A13 will be the home of advisers who do not hold permissions for hold...

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