FCA extends adviser fee deadline for many firms
For intermediaries only
The Financial Conduct Authority (FCA) has extended the payment deadlines for 90% of financial advice firms due to the impact of coronavirus.
In a policy statement published in July, the regulator said it proposed to extend the period for"medium and smaller firms" paying their fees by two months to 90 days due to the impact of the coronavirus outbreak.
This would mean 89% of firms will have until the end of this year to pay their fees and levies. Instead of having to pay their charges within 30 days of the date of the invoice, they instead have an extra 60 days.
The FCA said it categorised medium and smaller firms as those who will pay total fees and levies in 2020/21 of less than £10,000. The regulator added it expects larger firms to pay their fees within the usual deadline.
This total includes all of the fees they pay to the FCA, PRA, the Financial Services and Compensation Scheme (FSCS), the Financial Ombudsman Service, Money and Pensions Service, Devolved Authorities, the Payment Systems Regulator, the Financial Reporting Council and under the illegal money lending levy.
Last month, advisers saw their annual regulatory bills shoot up to new heights and reported increases upwards of 50% on their bill.
Many advisers were surprised at the increase, arguing there had been a lack of communication and explanation from the regulator as to why fees continued to rise so rapidly.