Financial advisers' regulatory charges will increase from £77.1m last year to a proposed £80.3m in 2018/19 - a difference of 4.2% - a consultation paper from the Financial Conduct Authority (FCA) has revealed.
The levy category that includes financial advisers, "A.13", proposes a payment of £2.4m towards Pension Wise - a small increase from last year's £2.1m - £2.2m towards the Money Advice Service (MAS), and £80,000 towards the Single Financial Guidance Body, a new body that will merge Pension Wise, MAS and The Pensions Advisory Service.
Overall, the proposed annual regulatory funding has increased 3.2% for 2018/19 to £543.9m. Reasons cited for the increase included additional ongoing regulatory responsibility, European Union withdrawal costs and "scope change recovery".
Feedback on the proposals laid out in the paper is due in July.
‘We will not hesitate to intervene'
The 2018/19 business plan meanwhile offered fresh warnings to advisers over unsuitable pension transfer advice.
"Some firms have responded to the pension reforms by changing their business models in ways that potentially cause harm to consumers," it said. "We will not hesitate to intervene, where necessary, if we see evidence of firms providing unsuitable pension transfer advice.
"We will be collecting data from all firms that have pension transfer permission to assess practices across the entire market. Our work will identify the extent of consumer harm and where and how we can intervene most effectively to stop it."
In January, Professional Adviser revealed the financial watchdog had sent an extensive survey containing more than 50 questions to 45 advice firms about their defined benefit transfer process, including the role of unregulated introducers.
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