FCA reveals budget increase for 2017/18

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Regulator's total annual funding requirement up 1.5% to £526.9m.

The Financial Conduct Authority (FCA) has budgeted for a total annual funding requirement of £526.9m for 2017/18, according to its Business Plan for the year.

This is a rise of 1.5% compared to the total annual funding requirement of 2016/17, which was £519.3m.

The regulator further budgeted for operating costs of £508.0m for next year, compared to £502.9m in 2016/17.

According to the FCA, payable fees for the year will be £475.3m, which is £4.7m more than the figure for last year.

Brexit
It added that £2.5m of the budgeted requirement will go to funding the UK’s withdrawal from the European Union, as well as comprising of its EU planning and coordination hub.

The document read: “As we gain more certainty over the process we will review the need to recover these incremental costs in future years.”

Mission
The FCA has also launched its Mission, following a consultation launched in October last year.

It stated that firms can expect that the regulator will ensure its messages are consistent as well as providing clarity and consistency so that firms have the "confidence to be proactive" in complying with its rules.

The regulator also noted that it would review its Handbook once the outcome of the EU withdrawal was clear and added that Brexit would have “important implications for the FCA over the coming years and will be a key area of focus”.

The Mission document also included a section on what consumers can expect from the FCA, highlighting that retail consumers are protected by the regulator’s principles and rules, particularly that firms are required to treat customers fairly.

Public interest
FCA chief executive officer Andrew Bailey said: "Our Mission is to serve the public interest through the objectives given to us by Parliament.

"The Mission gives firms and consumers greater clarity about how and why we prioritise, protect and intervene in financial markets.

"To do this we will continue to make difficult decisions. When we make regulatory judgements, we will be more transparent about how we reached them as we know that this is something our stakeholders want."

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