The Financial Conduct Authority (FCA) has proposed a near-doubling of the fee it charges authorised firms for supervision services.
The FCA today announced that it wants to raise its minimum fee, which has remained largely unchanged over the past decade, from £1,150 to £2,200 for the financial year starting in April 2022, a jump of 91 per cent.
In a statement the UK watchdog said that the new fees would “better reflect the costs associated with the authorisation and supervision of 51,000 firms throughout the UK.”
The money raised could support the FCA’s plans to invest heavily in its supervision of firms.
“As part of its transformation to a more innovative and assertive regulator, the FCA has committed to invest £120m over the next three years to strengthen its ability to identify firms and individuals of concern,” the statement continued.
News that the FCA wants to raise prices to beef up surveillance efforts follow criticism of the regulator for repeatedly failing to protect customers.
Last Friday the regulator announced plans to speed up its decision making process so that complaints can be dealt with faster. Senior managers were also granted powers to start civil and criminal proceedings against firms.
Closer scrutiny of firms through better data will reduce the possibility of unsuitable firms being authorised in the first place, the FCA said.
The regulator is also proposing an uplift of £25,000 to the application fees of recognised overseas investment exchanges which intend to use new and untried technology. A public consultation on the proposals closes on 31 January.