The FSA has published a Consultation Paper about their fees for the forthcoming year.
If you have received a request for fee tariff data directly then a response must be made by 29th February – or face a £250 “administration fee”.
If you are looking to cease to operate in a specific sector then the application needs to be submitted before the end of March – otherwise the full year 2008/9 fee will be requested. [ie ceasing to undertake non-investment insurance business].
Invoices are planned to be issued in June with 30 day terms. Late payers will incur the £250 “administration fee” plus interest.
Fee block changes :
A.13 – Advisory arrangers, dealers or brokers (not holding client money): [IFA’s]
increase in minimum fee of £200 from £1,650 to £1,850; and lower charge bands increase by 3.6% with the higher bands remaining constant;
A.18 – Home finance providers, advisers and arrangers: [mortgage brokers]
increase in minimum fee of £95 from £650 to £745; and an increase in all charge bands of 13% which also reflects the increasing work we are doing in the mortgage markets;
• A.19 – General insurance intermediaries:
increase in the minimum fee of £40 from £410 to £450; and an increase in lower charge bands of 11.1% with the higher charge bands increasing by 6.0%.
|
A.13 [IFA Investment business]
|
Minimum fee (£) 1,850
No. of persons Fee (£/person)
0 - 1 0
2 - 4 1,002.00
5 - 10 978.00
11 - 25 939.00
26 - 500 835.00
501 - 4,000 767.00
>4,000 724.00 |
|
A.18 [Mortgage brokers] |
Minimum fee (£) 745
£ thousands of Annual Fee (£/£ thousand or part £ thousand of AI)
Income (AI)
0 – 100 0
>100 - 1,000 5.18
>1,000 - 5,000 4.33
>5,000 - 10,000 3.46
>10,000 - 20,000 2.60
>20,000 2.18
|
|
A.19 [General Insurance] |
Minimum fee (£) 450
£ thousands of Annual Income (AI)
Fee (£/£ thousand or part £ thousand of AI)
0 - 100 0
>100 - 1,000 4.31
>1,000 - 5,000 3.77
>5,000 - 15,000 2.60
>15,000 - 100,000 1.04
>100,000 0.42 |
Financial Ombudsman Service
FOS case fees are also planned to increase from £400 to £450 but with each firm being entitled to three instead of two “free” case referrals per year.
