Fees  

FCA proposes new fee block structure for principal firms

The special case fee regime was withdrawn in April 2013 following a review.

Elsewhere, the FCA said the annual funding requirement is £681.8mn for 2023/24.

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In its fee proposal document published in April, the FCA said its overall AFR is estimated to go up by £53.3mn in 2023/24, an increase of 8.5 per cent from £630.9mn in 2022/23. 

"We recover the AFR by distributing it across fee-blocks, which group together firms with similar permissions," it said.  

"This ensures that their fees reflect the different regulated activities they undertake. Many firms fall into more than 1 fee-block because they hold a variety of permissions. Most of the AFR is made up by the ongoing regulatory activities (ORA) budget."

The FCA also outlined in the consultation that it is to lift its freeze on fees next year as the regulator says it is facing higher costs.

The regulator held down minimum, flat rate and application fees this year, but said it expects to return to inflationary and staged increases from next year.

sonia.rach@ft.com

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