The FCA has proposed a slight reduction in the amount advisers pay towards the regulator next year.
In a consultation on the regulator’s funding this morning, the FCA says it plans to reduce the amount the “A13” fee block pays – which includes advisers and some brokers – from £80.3m in 2018/19 to £79.4m in 2019/20.
If approved, the measure would represent a fall of around 1 per cent in adviser FCA levies.
However, the amount the A13 fee block pays towards pension guidance services is set to tick up from £2m to £4.3m.
This is due to the overall budget the Department for Work and Pensions required for pension guidance increasing due both to the creation of the Money and Pensions Service to combine the three existing government guidance services, and an extra £5m for the pension dashboard.
Overall, the pension guidance budget is set to increase from £20m to £36m, with advisers paying the same proportion – 12 per cent.
The FCA does not set the pension guidance budget, but collects levies on behalf of the Treasury.
It says in the consultation: “The MAPS has not been in operation for sufficient time to have produced data to justify changing the allocations. During this year we will discuss with DWP, HM Treasury and the MAPS whether to allocate MAPS costs to firms differently in future.”
The FCA adds it has had to include a £2.5m bill for Mifid II scope change on to bills across a number of fee blocks, including advisers’.
Investment managers will see a 3 per cent increase on their fee level to £12m, as will life insurers, rising to £44.6m.