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Mortgage adviser FCA levy upped 4%

Mortgage intermediary fees to the FCA will rise 4 per cent, it has been confirmed.

In total, the regulator will be looking to raise £17.6m in 2019/20, up from the £16.9m collected in 2018/19.

Furthermore, home finance providers and administrators will see their fees rise by 4.1 per cent, with the FCA aiming to harvest £17.9m from this fee-block in 2019/20.

For comparison, the the industry-wide increase sits at 2.7 per cent.

The FCA makes clear that in seeking consultation on proposed levy raises earlier this year, a trade body representing mortgage firms questioned why fact that the 4.1 per cent increase was the highest of all fee-blocks.

Said trade body also asked why the combined cost of both fee-blocks – £35.5m – absorbs a “disproportionate amount” of the total fees payable.

By way of answer, the regulator says that in 2018/19, it rebated part of the scope change costs of the Mortgage Credit Derivative allocated to the two fee-blocks in 2017/18, and because this rebate is not repeated, the year-on-year change is higher.

It adds that, in 2015/16, the two fee-blocks’ charges totalled 7.1 per cent of the proportion of the regulator’s annual funding requirement, whereas in 2019/20 this comes to 6.4 per cent.

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