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The Financial Conduct Authority (FCA) has published its consultation paper (CP16/9) on the fees and levies it proposes to collect to fund the activities covered in its Business Plan for 2016/17.
The Annual Funding Requirement has been set at £519.3m which is made up of £481.6m for Ongoing Regulatory Activity (ORA) which is the same as the previous year and £37.7m for consumer credit supervision.
Offsetting the £519.3m total is a rebate from financial penalties of £49.6m (£43.6m last year) from which the A19 (general insurance mediation) fee block will benefit by £2.9m (11.3%).
The total ORA levy proposed for the A19 fee block is £27.6m, which is a 1.6% reduction on the £28.1m levied the previous year.
The minimum levy amount for ORA remains at £1,084 as per the previous year. The minimum levy for firms under the CC2 (Full permission) category (which includes insurance brokers) remains at £300.
The Financial Ombudsman Service levy from firms subject to the compulsory jurisdiction (which includes insurance brokers) has been set at £24.5m, with the I017 fee block (general insurance mediation) paying 22.1% (approximately £5.4m and subject to a minimum fee of £100) and a further 1.2% from firms with a full consumer credit permission (minimum £35).
Excluding the levy for debt advice (to which insurance brokers make no contribution) the Money Advice Service levy for money advice is set to be charged at £27.6m with firms in the A19 fee block likely to pay £0.6m (down 11.6% on the previous year), subject to a minimum £10 levy.
Members can access the consultation paper here:
The closing date for comment is 27th May 2016. Any member wishing to feed observations into the BIBA response, should email them to David Sparkes at sparkesd@biba.org.uk by 20th May 2016.
BIBA members’ compliance and regulation queries should be directed to: compliance@biba.org.uk
The post FCA proposes rates for regulated fees and levies in 2016/17 appeared first on British Insurance Brokers' Association.
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