The regulator says it will not implement AIFA's call for a "major overhaul" of adviser levies until further consultation, which will not see any changes introduced until 2011/12.
This consultation comes as the overall drop in fees for IFAs for the year 2010/11 compared to the previous year is not as high as originally estimated. The FSA has reallocated £1.34m from the B fee-block (encompassing exchanges and clearing houses) to certain A fee-blocks including A13 which is mainly IFAs. Their allocated Annual Funding Requirement (AFR) will increase from original forecasts of £40.2m to £40.6m. This means their decrease in fees compared to 2009/10 is only 7.2% compared to initial proposals of 8%. Aifa says this year the cost per adviser has increased by between 2% a...
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