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Proposals for FCA Fees & Levies 2020/21

FCA Fee increases and changes for 2020/21

18 November 2019

The FCA has recently published a consultation paper (CP19/30) that sets out their proposals for regulatory fees and levies during the next financial year, 2020/21. CP19/30 details the rise in fees as well as information for new sectors  that will come under FCA supervision over the course of the next year.

Such sectors include proxy agents and cryptoasset business since they will come under supervision of the FCA from January 2020. (See our previous article on FCA Business Registration Requirements & Registration Fees).

The consultation runs until 13 January 2020, thus any comments and responses should be submitted to the regulator before this deadline.

2020/21 Regulatory Fees & Levies: What is changing?

The main changes to the fees and levies detailed by the FCA include:

• A proposed charge of £5,000 per year for proxy advisors.
• The proposal to use income as the basis for calculating periodic fees for Multi-lateral Trading Facilities (MTFs), Organised Trading Facilities (OTFs) and Recognised Overseas Investment Exchanges (ROIEs).
• Special project fees proposals – updating who they apply to, adding a restructuring transaction, guidance to using relieving provisions where authorisation application fees are also payable. This is likely to affect MTFs, OTFs and ROIEs.
• Proposals for the calculation of Periodic Fees affecting D.1 fee-block designated professional bodies
• Change to the Valuation date for variable fees for Premium listed issues in E. fee-block
• Proposals relating to the Illegal money lending levy with updates to cross reference to FCA rules
• Proposed amendments to FEES App 3.1.2(2) to make clear that the 2019/20 fee-rate for persons registered under the Money Laundering Regulations covered by the G.1 fee-block, is £460
• ​​​​Proposal that an administration charge of £50 is established for fee-payers requiring paper invoices.
• Possible mechanisms for funding free-to-consumer debt advice in the UK, including the debt advice levies for the Money and Pensions Service (MaPS) and the devolved authorities.

Comments, feedback and final rules in relation to the Fee Proposals will be published by the FCA next Spring.

To read the CP19/30 Consultation Paper in full see here.

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