FCA has published its annual funding requirement (AFR) for 2013-14 and its proposed fees for firms. Overall the AFR for FCA is £432.1 million and the combined FCA/PRA AFR is £646.3 million. For the fourth year running the gross minimum fee for firms (currently paid by 42% of FCA firms) will remain unchanged at £1,000. Medium-sized firms’ fees will increase proportionately to their business. Larger firms will see the greatest increases which reflect the resources FCA needs to apply to conduct and prudential supervision of high impact firms. Its fees for the supervision of the conduct of dual-regulated firms will form a major part of the fee base. It has introduced a new category for prudential supervision levies for solo regulated firms. FCA plans to channel most of the fees towards:

  • focusing on good consumer outcomes;
  • tackling market abuse;
  • promoting competition within the industry;
  • addressing ongoing misconduct; and
  • carrying forward initiatives such as the retail distribution and mortgage market reviews, and continuing to engage with EU institutions.

FCA asks for comments by 9 June. (Source: FCA Consults on Fees CP13/1**)