Watchdogs ask for £650m fees from City firms
10 April 2013 1:58am
THE NEW dual system of finance regulation means the sector will see fees hiked sharply this year, with particular focus on the big banks, the watchdogs revealed yesterday.
Overall the costs will come to £646.3m, a rise of 15 per cent on last year’s costs. The Financial Conduct Authority (FCA) will take £432.1m of that, with the Bank of England’s prudential regulation authority (PRA) accounting for the remainder.
Of the increase, £34.4m is allocated to front line staff costs as supervision becomes more intensive, while £43.9m will go towards improving IT systems.
Investigating Libor manipulation alone will cost an extra £13.5m this year, the FCA predicts.
The FCA covers the largest number firms, responsible for monitoring the behaviour of 26,000 firms, with the prudential regulation authority only covering around 3,000, predominantly the large banks and insurers whose behaviour could impact on stability.
However a large number of the FCA’s firms will pay a minimal amount, as the costs rise for firms that pose the biggest risks and need the most intensive monitoring.
Around 42 per cent of firms will pay £1000, the minimum level and the same amount as they paid under the Financial Services Authority.
But that means the biggest firms will see a sharp rise in fees, with some expected to pay around 25 per cent more, potentially costing tens of millions of pounds a year.
The regulators pledged to bear down on costs in future to stop banks being stung so hard year on year.
“The PRA will make every effort to reduce its costs and take advantage of sharing support costs with the Bank of England and seeking efficiencies in its operations as part of any Bank-wide value for money initiatives,” the watchdog said.
“The FCA is fully committed to improving the value for money of the services it provides to stakeholders.”
In other news
Emirates Airline has been confirmed as the new sponsor of the FA Cup on the day of the cup final which will see [Read more]
Newly re-elected Fifa president Sepp Blatter has given a press conference in Zurich where he answered the many [Read more]
Sir Tim Berners-Lee, the inventor of the World Wide Web, has warned of encroaching government powers after plans [Read more]
Sepp Blatter will be Fifa president for a further four years after comfortably beating Prince Ali Bin Al-Hussein [Read more]
Ukip's Lord Pearson of Rannoch has asked the government to back a draw Mohammed competition. [Read more]
Network Rail and RMT bosses are once again entering talks to see if the latest set of strikes, announced yesterday, [Read more]
IMF chief Christine Lagarde said this morning that a comprehensive deal with Greece is "very unlikely... in the next few days". [Read more]
Good news multiple-gun salute fans. Next week there will be not one but two such events, marking the 62nd year [Read more]
An EasyJet flight from Luton to Tel Aviv has been forced to turn back after multiple cabin crew members reported [Read more]
A vehicle has struck a bridge it was passing under in Tulse Hill, south London, causing train cancellations and [Read more]
Shares in troubled insurance claims outsourcer Quindell fell in late morning trading after the company announced [Read more]
After a number of top Fifa officials were arrested on accusations of bribery and racketeering this week, the already [Read more]
The mother of the children who died at a Thomas Cook-approved hotel in Corfu has slammed Harriet Green's decision [Read more]
The meteoric rise in London office rents is unlikely to slow down for at least another year, the chief executive [Read more]
Andy Burnham will today admit that Labour got it wrong on business and the economy, and that the party cannot [Read more]
The German Chambers of Commerce and Industry has said it is “astonished” that the UK is considering leaving [Read more]
When it comes to creating new technologies, London is a long way behind other cities in the UK, new research has [Read more]
Four FinTech startups have won $100,000 (£65,400) backing from Citi after a search for new technology and innovation [Read more]
Property types may have been worried about the looming spectre of a mansion tax during the run-up to the General [Read more]
Corruption allegations, arrests of top officials, global outrage - in most organisations such calamities would [Read more]
Are the UK's new crop of MPs actually any good at social media? [Read more]
Donmar Warehouse | ★★★★★ [Read more]
Olivier Theatre | ★★★☆☆
Kingfisher, Europe’s biggest home improvement retailer, said it has found buyers for a quarter of its stores [Read more]