Advisers will see a fall in their Financial Conduct Authority (FCA) fees this year, following a consultation published this morning by the regulator.
In a paper released this morning as part of its annual business plan, the FCA said A13 firms, which covers advisers and brokers, will see their FCA fees fall from £80.3 million in 2018/19 to £79.4 million in 2019/20. This represents a decrease of 1.1%.
However, despite this reduction, the regulator today said levies on advisers will increase as part of the roll-out of the government’s new guidance body, Money and Pension Service (Maps). Maps is a consolidated quango consisting of the services formerly known as Pension Wise, The Money Advice Service and The Pensions Advisory Service.
Overall, the Department of Work and Pensions told the FCA it needs to collect £117.6 million for Maps in 2019/20. This was broken down into:
- £35.9 million for pensions guidance across the UK;
- £25.9 million for money guidance across the UK;
- £55.8 million for debt advice in England.
The £35.9 million pension guidance budget included £4.9 million to be put towards the pensions dashboard.
Advisers will pay £4.3 million towards the pensions guidance body in the 2019/20 financial year, compared to £2 million last year.
The DWP said that the new guidance service would be able to arrange 205,000 'pension freedoms guidance sessions'. It also promised 'various investments and improvements' to the existing Pension Wise service.