FCA sets out fee consultation

UK money

Proposed changes include charging fees to firms who still use paper invoices and revised tariff data for calculating insurers’ fees and levies from 2018/19.

The Financial Conduct Authority (FCA) has published its consultation on Regulatory fees and levies: policy proposals for 2018/19.

The proposals include developments into how the regulator could calculate insurers FCA periodic fees and Financial Ombudsman levies.

The document includes a proposal to adopt the Prudential Regulation Authority’s revised tariff data but to propose different weightings between premium income and liabilities elements for general insurers.

The FCA noted: “Since the introduction of Solvency II in 2016, we have had to amend the FEES manual rules relating to tariff data for firms that are subject to Solvency II reporting requirements, and consider any implications for ‘non-directive firms’ that are not subject to Solvency II. The PRA has published a separate consultation paper (CP) covering its insurers’ tariff data fees rules.”

In addition the watchdog is also proposing to charge firms who still wish to use paper invoicing instead of electronic.

Paper
The FCA stated: “About 85% of our authorised firms are registered and using online invoicing, leaving about 8,000 receiving paper invoices. We encourage all firms to register for online invoicing and most new joiners are automatically set up with access to the online system.”

The regulator explained that these additional costs are carried by the whole body of fee-payers and proposed that firms wishing to continue with it should pay between £50 to £100 per year to cover the costs.

The document also includes proposals on the financial penalty scheme, consumer credit, Northern Ireland, and the Money Advice Service.

The consultation closes on 15 January 2018 and a policy statement is due in March 2018.

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