FCA consults on increased fees amid AI plans

Regulator proposes to raise minimum and flat fees by 1%

Sophia Panayi
clock • 3 min read

The Financial Conduct Authority (FCA) has proposed to raise its minimum and flat fees after announcing plans to use generative artificial intelligence (AI).

The regulator plans to increase minimum and flat fees by 1%, which it claims is the lowest rise in the fees budget since 2017/18 and "well below" the rate of inflation. It is also the lowest annual funding requirement (AFR) increase in a decade, at 0.7%. The FCA is running a consultation on its regulatory fees and the levies collected for the Financial Ombudsman Service and government. The consultation will run until 30 April. Forming part of the regulator's annual work programme 2026/27, a new AI authorisation tool is being developed internally and will be integrated into existing FC...

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