FCA consults on regulatory fees and levies for 2018/19
Regulatory Updates | 14/11/17
The FCA has published a consultation paper on regulatory fees and levies: policy proposals for 2018/19 (CP17/38). In particular, the FCA:
• Proposes to amend the tariff data (the measure of the size of firms within a fee-block) it will use to calculate insurers’ FCA periodic fees and the Financial Ombudsman Service (FOS) annual levies from 2018/19. For FCA periodic fees, the FCA is proposing to adopt revised tariff data from the PRA, but proposes different weightings between the premium income and liabilities elements of the tariff data for general insurers. For the FOS, the FCA proposes to mirror the FCA’s proposed changes in relation to the Compulsory Jurisdiction (CJ) premium income tariff data.
• Plans changes to update the scope of its financial penalty scheme (FPS).
• Invites views on whether and how the FCA might refine the definition of credit-related income to take account of the specific circumstances of consumer hire agreements. It uses income as the basis for calculating consumer credit fees.
• Informs Northern Ireland credit unions, co-operatives and community benefit societies how they will fit into fees structure when the FCA becomes their registration authority in 2018.
• Seeks views on whether it should recover administration costs by charging firms that require the FCA to issue them with paper invoices through the post, instead of using an automated invoicing system. If there is support, the FCA will consult next year on introducing a charge from 2019/20.
• Consults on a revised methodology for calculating the levy that funds the debt advice work of the Money Advice Service (MAS). The proposal is to align the levy more closely with firms’ lending activities.
CP17/38 closes to comments on 15 January 2018. The FCA will publish feedback, together with final rules, in its March 2018 Handbook Notice.