AR principal firm fee change 'introduces uncertainty'

FCA proposes a variable fee model instead of flat-rate

Isabel Baxter
clock • 2 min read

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 ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

Isabel Baxter
Author spotlight

Isabel Baxter

News editor at Professional Adviser

More on Your profession

Most of our industry has forgotten what advisers actually do

Most of our industry has forgotten what advisers actually do

‘Providers have a responsibility to better support advice firms’

Mark Sanderson
clock 16 March 2026 • 3 min read
Government unveils changes to FOS operations after landmark review

Government unveils changes to FOS operations after landmark review

New ten-year limit for bringing complaints

Isabel Baxter
clock 16 March 2026 • 5 min read
Feel Good Friday: Wise Investment employee takes on the Great Wall of China for charity

Feel Good Friday: Wise Investment employee takes on the Great Wall of China for charity

Raising funds for Katherine House Hospice

Professional Adviser
clock 13 March 2026 • 1 min read