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Compliance

Regulatory fees and levies: proposals for 2021/2022

Posted on 16 Dec 2020

In November 2020, the FCA published a Consultation Paper (CP20/22) on changes in the way it will increase regulated fees and levies rates from 2021/2022.

The Regulator seeks to simplify and replace all FCA authorisation application fees and introduce new transaction fees; propose a structure of periodic fees for crypto-asset businesses and this Consultation Paper sets out proposals of the FCA’s consultation to introduce income to calculate periodic fees for firms that operate in OTFs and MTFs.

More specifically, a few of the proposed changes include:

  • Introducing a fee for Change in Control applications of £500 and for Senior Managers applications of £250. Both fees will be charged for ‘first-time’ applications.
  • Increasing FCA application fees, i.e. for a ‘simple’ application, there is an increase from the current amount of £1,500 to £2,500 and for a ‘moderately complex’ application the fee will increase from £5,000 to potentially up to £10,000.

The FCA state that the total cost of Authorisations in 2019 was £19 m. The application fees meanwhile raised revenue of £6.2m, equivalent to only 33% of the cost

A full list of the FCA’s proposed new fees is available in the Consultation Paper.

If these proposals are confirmed, the FCA will publish its final rules in their March 2021 Handbook Notice. The consultation period ends on 22nd January 2021.


FCA Fees and Laven

At Laven, our consultants are on hand to help identify the actions your firm needs to take to ensure you are compliant with new regulations and aware of all the risks outlined in this report. Whether this is through assisting with new policies and procedures that need to be put in place or providing online/in-person training for staff to make them fully aware of the regulatory burden.

Laven has also built Laven Tech, a unique Regulatory Technology (RegTech) solution that leverages advanced technology combined with our vast subject matter expertise. Our RegTech solution is designed to assist fund managers, service providers and investors to meet today’s growing demands.

Find out more