The FCA published its policy statement on regulated fees and levies for 2016/17 (PS16/16) together with the feedback received on its consultation paper (CP16/9), confirming:
- There will be no change to the minimum fees for limited permission and full permission firms.
- There will be no change to the variable fee for limited permission firms.
- The 2014 full permission variable fee of £0.78 will increase by £0.52 to £1.3 (68%). This will affect 7% of firms.
- Overall, only 2% of consumer credit firms will be paying fees which are higher than those that have applied since 2014.
- The current levies for the FOS and the Money Advice Service remain unchanged.
The PRA published its policy statement on regulated fees and levies for 2016/17 (PS18/16), confirming it will proceed with most of its proposals set out in its consultation paper (CP10/16). Proposals include:
- An annual funding requirement (AFR) of £257.3 million, to be recovered from firms as set out in Chapter 2 of the PRA’s consultation paper.
- A ring-fencing implementation fee, to be recovered from firms that are ring fencing their core activities in line with the Financial Services (Banking Reform) Act 2013 (the ‘Banking Reform Act’). The PRA’s budgeted costs associated with the implementation of ring fencing in 2016/17 are £7.9 million.
The PRA confirmed that there will be a refund to fee payers of unspent AFR in 2015/16 of £4.8 million. It also confirmed that the FCA provides a facility on its website to enable firms to calculate their periodic fees for the forthcoming year using the PRA rates in Appendix 1 of the policy statement.