Apfa says advisers face 30% hike in fees despite lower FCA budget

The Association of Professional Financial Advisers estimates intermediaries face a 30 per cent hike in regulatory fees as part of the FCA’s £432m budget for 2013/14.

The FCA’s business plan, published this week, shows the annual budget for next year has been set at £432.1m – a 23 per cent reduction from the FSA’s £559.8m budget in 2012/13, of which advisers paid around £87m.

The FCA budget has been pushed down by certain costs now moved across to the new Prudential Regulation Authority.

Of the total £432.1m FCA budget, the industry will pay £391.5m, due to £40.6m in retained FSA fines. The business plan suggests around 30 per cent of the budget will be paid for by investment advisers, mortgage advisers and general insurance brokers, which would amount to £118.6m based on the £391.5m figure.

The FCA will publish a paper next month setting out the fees firms will pay.