Laura WilesThe FCA is consulting on proposals for changes to its policy on how it raises regulatory fees and levies.
Proposed changes to the FEES Manual of the Handbook include:
- increasing the registration fee for Small Payment Institutions (SPIs) from a category 2 fee (£540) to a category 3 fee (£1090);
- increasing the registration fee for Annex 1 financial institutions from a category 1 fee (£270) to a category 2 fee;
- amending wording as to skilled person review fees to clarify that a firm is liable to pay fees only when the FCA has given notice of the appointment;
- replacing the application fee approach for validation orders with a 2-stage model; and
- replacing the flat-rate fee model in fee-block A.22 for principal firms of ARs with a variable fee model.
The FCA also proposes to defer the in force date for the widened definition of ‘relevant business’ in FEES 5 from 1 April 2025 to 1 April 2026.
The FCA expects to consult on proposed alternatives to the headcount tariff base for firms in fee-block A.10 in November 2025
The consultation closes on 24 January 2025.