It may be recalled that CP14/26 (see Regulatory Roundup 61) “Regulatory fees and levies: policy proposals for 2015/16” proposed certain policy changes to the fee and levy regimes. However its function was not to consult on fee rates; we have had to wait for the publication of CP15/14 “FCA Regulated fees and levies: Rates proposals 2015/16” for those details (and which also includes feedback to responses on CP14/26). As a reminder, FCA periodic fees relate to the FCA’s financial year, which is 1 April to 31 March.
The annual funding requirement (‘AFR’) for 2015/16 – which will need to be allocated across fee-blocks – has been set at £481.6m, a £35.2m (+7.9%) increase on last year’s AFR of £446.4m. Although the FCA is required to pay all financial penalties it has imposed on firms to the Treasury, it is permitted to retain sufficient to cover the costs incurred in generating these penalties. This ‘rebate’ is estimated to be £40.3m (£39.1m in 2014/15) so the net increase in fees is £33.9m year on year (although para 5.9 advises that the FCA has found another £3.5m to include in the overall rebate).
Draft fee rates are set out in Appendix 4 – fortunately the FCA provides a fees calculator which firms can use to have a better idea of the impact that the consultative fee rates will have on them – we will not know the final rates until the end of June. The calculator also covers FOS and FSCS levies etc.
Comments are invited by 18 May 2015.
