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27 November 2014

The Association of Professional Financial Advisers (APFA) welcomes today’s news that the FCA has revised its proposals for funding the guidance guarantee levy to offer a fairer deal for the financial advice profession.

 

Following lobbying by APFA, and interventions from APFA members, the proposed allocation of the levy falling on financial advisers has been reduced to 12%, from the 20-30% initially proposed. Assuming an annual cost of £20m for the guidance guarantee, this represents a saving of between £2m and £4m a year for the financial advice profession.

 

Additionally, small firms below a fee threshold of £100,000 will not be required to pay at all.

 

Chris Hannant, Director General of APFA, said:

“This is significant progress. When the initial proposals were published, APFA voiced its concerns and with our members we’ve been lobbying the FCA since then for a revision.

 

“We’re pleased that the FCA has listened to the profession and come back with new proposals that represent a fairer deal for advisers.

 

“We’ll continue to work hard for advisers, reducing the regulatory burden and holding the FCA to account.”

 

ENDS