FCA consults on regulatory fees and Consumer Duty

The FCA has proposed some policy changes to the way it will calculate its fees from 2022/23.

The paper includes increases to the fees financial services firms pay to cover the cost of regulation. 

When the FCA consulted on fee-rates in April 2021, it said it would undertake a review of the fee structure, including minimum fees, as part of its Transformation Programme. The proposed fee changes in the consultation reflect the costs associated with the authorisation and supervision of 51,000 firms throughout the UK. 

The FCA will consider all feedback received on the consultation and expects to implement changes in time for the 2022/23 fee cycle.  

The FCA has also published a consultation paper outlining its proposals for a new Consumer Duty, which will provide a higher level of consumer protection in retail financial services.  

The new Consumer Duty aims to bring about a fairer, more consumer-focused and level playing field in which: 

  • firms are consistently placing consumers’ interests at the centre of their businesses and focusing on delivering good outcomes for consumers    
  • competition is effective in driving market-wide benefits, with firms competing to attract and retain customers based on high standards 
  • regulation keeps up with technological change and market developments so that firms can innovate with certainty of the regulatory expectations  
  • consumers get products and services that are fit for purpose, provide fair value, that they understand how to use, and are supported in doing so. 

The consultation is open until 15 February 2022. Once the FCA has considered the feedback to this consultation, it will make any new rules by the 31 July 2022.  

If you have any input on either of these consultations, contact [email protected]