On 30 November 2021, the Financial Conduct Authority (FCA) published Consultation Paper 21/33 ‘Regulatory fees and levies proposals for 2022/23’ (CP21/33). In CP21/33 the FCA sets out proposed policy changes to the way in which it will raise FCA fees from 2022/23. The FCA is funded entirely by the fees and levies from the firms it regulates.
In CP21/33 the FCA:
- Presents a model for calculating minimum fees in the A fee-blocks and proposes integrating consumer credit firms with the minimum fees and prudential charges of A-block firms. These proposals would increase the FCA’s charges and when it consults on the fee-rates for 2022/23 next April, the FCA will consider whether to implement them in full.
- Reviews the fees implications of the Investment Firms Prudential Regime. The FCA proposes charging special project fees to recover costs directly from firms whose applications for the use of certain risk models will require exceptional supervisory resources and discusses the approach to periodic fees.
- Presents other fees policy proposals – reporting arrangements for pre-paid funeral plan firms and the extension to them of the annual charge for approved persons; an uplift of £25,000 to the application fees of recognised overseas investment exchanges which intend to use new and untried IT; and two technical drafting clarifications to the FEES sourcebook.
- Discusses its approach to recovering the costs of projects which bring new types of firm into the FCA’s regulatory scope following changes in legislation.
The deadline for comments on CP21/33 is 31 January 2022.
The FCA will publish a Handbook Notice in March 2022 in relation to comments received.