FCA issues Policy Statement FCA regulated fees and levies 2022/23

July 2022


The FCA has published the 2022/23 periodic regulatory fees and levies for the FCA, FOS, the Money and Pensions Service (referred to in the FEES manual as the Single Financial Guidance Body – SFGB), devolved authorities and the Treasury’s expenses in funding the teams that tackle illegal money lending.  The Policy Statement also includes the FCA’s feedback on the responses to the consultation on the draft fees and levies rules in CP22/07 ‘FCA Regulated fees and levies: Rates proposals 2022/23’.

Since consulting, the FCA has made some changes which have had the effect of lowering the proposed overall fee increases, but they are still fee increases which are summarised below:

Fee type 2021/22 Proposed 2022/23 Actual 2022/23 % increase on 2021/22
Annual Funding Requirement (AFR) £613.7m £640.0m £630.9m 2.8%
Fees payable by firms £563.2m £591.0m £581.5m 3.25%
Annual Fees for GI Distribution £30.4m £31.4m £31.5m 3.6%
Annual fee per AR* £250 £287 £266 6.4%
Annual fee per IAR* £75 £86 £80 6.67%

 

*The AR and IAR annual fee increases have been brought into line with the rate of inflation in February 2022.  The FCA is, though, reviewing its long-term funding arrangements for developing policy towards ARs and ongoing regulation and enforcement, where the FCA expects to intensify activity in line with its published business plan and strategy. It will review the options for cost recovery in the fees policy Consultation Paper that it expects to publish in November.

Although the AFR and the total fees payable have reduced, the proposed fees to be paid by the GI distribution sector have increased fractionally – so this sector is suffering a higher fee increase than the increase in the AFR and the increase in fees payable in total (3.6% against 2.8% and 3.25% respectively).

Firms can use the FCA’s online fees calculator to calculate their individual fees based on the final rates in this Policy Statement. This includes FCA periodic fees and the FOS, Money and Pensions Advice Service, Devolved Authorities and illegal money lending levy final rates. The fees calculator will also cover FSCS levies.

For more information, click here.


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