APFA responds to FCA consultation on fees
02 June 2014
The Association of Professional Financial Advisers (APFA) has responded to the FCA’s consultation on regulated fees and levies.
While it welcomes the changes to the A12/13 fee blocks and revised approach to allocating MAS costs, it has questioned the justification for high consumer credit fees. It has also called on the regulator to reconsider its decision not to continue with its fundamental review of its fees methodology in the light of the recent pension reforms.
Chris Hannant, Director General at APFA, said:
“The changes to the A12/13 fee block and the changes to the MAS levy will result in a much needed reduction in regulatory costs for most adviser firms. However, given firms that were in the ‘old’ A13 block picked up a greater share of last year’s bill than they should have done, we urge the FCA to make an adjustment to this year’s fees for those firms.
“We also do not believe that the £300 consumer credit fee proposed by the FCA is justified when the vast majority of adviser firms are only obtaining consumer credit authorisation to ensure they do not fall foul of the unclear rules. We urge the FCA to significantly reduce this charge.
“The regulator should also remove the requirement for advisers to pay additional fees to FOS and MAS, given advisers’ consumer credit activities are negligible and it is extremely unlikely they will give rise to consumer credit complaints.
“We are also disappointed that the FCA is not continuing with its fundamental fees methodology review. Advisers are still paying a disproportionately large share of the regulator’s costs given they represent a very low risk of consumer detriment. The changes that are happening in the pensions and long term care market mean it has never been more important that consumers have access to affordable advice, so we urge the FCA to restart its review.”
To read APFA’s full response please go to www.apfa.net/policy/responses/APFA-response-CP-14.6-FCA-fees-rates-proposals-2014-15.pdf
ENDS
