FSA defends 'straight line' fee recovery plan

Scott Sinclair
clock

The FSA says proposals to charge firms' variable fees depending on their size are an "appropriate" measure to reflect the amount of work it carries out.

It says under the ‘straight line recovery' method, 90% of firms will pay less in the 2011/12 financial year despite a 10% rise in its annual funding requirement (AFR) to more than £450m. Larger firms will see significant fee increases. The move is for those firms that pay a variable periodic fee on top of the minimum fee, which the FSA today said would be £1,000 for all regulated firms. It proposes the variable periodic fee should increase in direct proportion to the size of a firm - on a ‘straight line' basis. The more permitted business a firm undertakes, the more fees it will pay. ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Phillip Wickenden: The political map has been redrawn

Phillip Wickenden: The political map has been redrawn

'The market is not pricing personalities. It is pricing discipline'

Phillip Wickenden
clock 11 May 2026 • 6 min read
Why the end of paper shareholdings matters now

Why the end of paper shareholdings matters now

‘There is still time before the 2027 deadline’

Ben Rogers
clock 11 May 2026 • 4 min read
How advisers can support clients through market volatility

How advisers can support clients through market volatility

‘Losses simply hurt more than gains feel good’

Sophia Panayi
clock 08 May 2026 • 3 min read