FCA moots 10% broker fee cut

Mortgage brokers could see their Financial Conduct Authority fees drop by 10.7 per cent under new proposals unveiled today.

An FCA levy consultation suggests that firms in the A.18 home finance provider category would pay £16.3m for 2017/18, compared to £18.2m in 2016/17.

The consultation closes on 9 June and intermediaries would get bills after that date.

However, any brokers and advisers that are part of the FCA’s A.13 fee block would get a mooted 4.7 per cent levy increase.

The regulator is also proposing to increase its flat fees by 1 per cent.

The FCA consultation says: “We are proposing to increase 2017/18 minimum and flat fees by 1 per cent to reflect the inflation increase in our ongoing regulatory activities (ORA).”

Last year the FCA increased its broker fees by 7.1 per cent to cover the costs of implementing the Mortgage Credit Directive.

The ‘home finance providers and administrators’ fee block paid £17.3m in 2015/16.