The Financial Conduct Authority (FCA) has proposed to replace the flat-rate fee model for principal firms of appointed representatives (AR) with a variable fee model.
The watchdog introduced the flat fee for principal firms in 2021/22. It was initially set at £250 per AR and £75 per introducer AR (IAR). Since 2023, the FCA increased fees so the flat fee became £289 for an AR and £87 for an IAR. This has now been proposed to change to a variable fee model and the FCA has opened the floor for feedback from principal firms. In a consultation released by the regulator on 29 November, it stated that this change will "make sure we recover the revenue we need". It will close on 24 January next year. The FCA wrote: "This will reduce the risk of over or ...
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