If your fees have changed in 2023/24 please review the table below which explains the changes to fee rates since last year.
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FCA fees
Overall, the FCA’s AFR has increased in 2023/24 by 8.1%. The fee rate movements for each fee-block broadly reflect this percentage increase (adjusted for other factors) and the change in total tariff data reported by firms.
Your actual fees are based on the volume of business (your tariff data) you have reported, so reporting a large change in your tariff data this year will also have an impact on your actual fees.
| Fee-Block | Tariff Base | Annual Funding Require-ment (AFR) | AFR Change from Last Year | Total Tariff Data Change from Last Year | Rate Change from Last Year | Explanations |
|---|---|---|---|---|---|---|
| A001 Deposit acceptors | Modified eligible liabilities | £87.6m | 7.6% | 5.3% | 2.1% | The A001 AFR has increased by slightly less than the 8.1% overall FCA AFR due to it receiving rebates in respect of the Senior Managers and Certification Regime (SM&CR) and Cryptoassets to which it previously contributed costs. Although the A001 AFR has increased by 7.6%, as the amount of Modified Eligible Liabilities (MEL) has increased by 5.3%, the rates have increased by only 2.1%. |
| A002 Home finance providers and administrators | Number of home finance transactions (NOHFT) |
£21.5m | 8.0% | -0.8% | 9.3% | The A002 AFR has increased by 8% in line with the overall FCA AFR. With a slight decrease on the Number of Home Finance Transactions (NOHFT) and the 8% increase in the AFR, the rate has increased by 9.3%. |
| A003 Insurers - General | Gross written premiums (GWP) |
£28.1m | 10.1% | 12.5% | -2.1% | The A003 AFR has increased by 10.1%. The reason this is greater than the overall FCA AFR is that this fee-block does not benefit from the rebates for Claims Management Companies (CMC) or Cryptoassets as it has not contributed towards these costs previously. However, although the AFR has increased by 10.1%, as the value of Gross Written Premiums (GWP) has increased by 12.5%, the rate has actually reduced by 2.1%. |
| A003 Insurers – General | Best estimate liabilities (BEL) |
£3.1m | 10.1% | 3.2% | 13.2% | The A003 AFR has increased by 10.1%. The reason this is greater than the overall FCA AFR is that this fee-block does not benefit from the rebates for Claims Management Companies (CMC) or Cryptoassets as it has not contributed towards these costs previously. Although the total value of Best Eligible Liabilities (BEL) has increased by 3.2%, as not all of this data is above the minimum threshold for this fee-block, the chargeable data has actually decreased. This reduction, together with the increase in the AFR of 10.1% has resulted in the rate increasing by 13.2%. |
| A004 Insurers - Life | Gross written premiums (GWP) |
£31.8m | 8.9% | 0.6% | 8.2% | The A004 AFR has increased slightly above the overall FCA AFR. This is because this fee-block does not benefit from the Claims Management Companies (CMC) rebate of £1.6m as it has not previously contributed to these costs previously. The rate has increased by 8.2% due to the 8.9% increase in AFR slightly offset by a small increase in Gross Written Premiums (GWP). |
| A004 Insurers – Life | Best estimate liabilities (BEL) |
£21.2m | 8.9% | -14.1% | 26.7% | The A004 AFR has increased slightly above the overall FCA AFR. This is because this fee-block does not benefit from the Claims Management Companies (CMC) rebate of £1.6m as it has not previously contributed to these costs. As the AFR has increased by 8.9% and there has been a significant fall in Best Estimate Liabilities (BEL), the rate has increased by 26.7%. |
| A005 Managing agents at Lloyds | Active Capacity (AC) |
£.2m | 7.6% | 22.9% | -14.5% | The increase in the AFR of 7.6% which is slightly lower than the overall FCA AFR increase. This is due to this fee-block receiving a proportion of the Senior Managers and Certification Regime (SM&CR) rebate as it had previously contributed towards these costs. As the amount of Active Capacity (AC) has increased by 22.9% this has resulted in the rates being reduced by 14.5%. |
| A007 Portfolio managers | Funds under management (FUM) |
£53.7m | 8.0% | -5.7% | 13.6% | The AFR for this fee-block has increased by 8.0% in line with the overall FCA AFR. However, as the Funds under Management (FUM) has fallen by 5.7%, the rates have had to increase by 13.6%. |
|
A009 Managers and depositaries of investment funds, and operators of collective investment schemes or pension schemes |
Gross income (GI) |
£14.3m | 8.0% | 2.0% | 5.4% | The AFR for this fee-block has increased by 8.0% in line with the overall FCA AFR. The increase in this fee-block’s AFR has been offset in part due to an increase in Gross Income (GI) of 2% resulting in the rates increasing by just 5.4%. |
| A010 Firms dealing as principal | Number of traders (NOT) |
£62.3m | 10.3% | -3.0% | 16.6% | The AFR in A010 has increased by 2.2% above the overall FCA AFR because this fee-block does not benefit from the Claims Management Companies (CMC) or Cryptoassets rebates as it has not previously contributed to these costs. Due to this increase in AFR and a fall of 3% in the number of traders (NOT), the fee rate has increased by 16.6%. |
| A013 Advisers, arrangers, dealers and brokers | Annual income (AI-A13) |
£94.6m | 8.9% | 9.8% | -1.0% | The increase in the A013 AFR is slightly above the overall FCA AFR increase because it does not benefit from the Claims Management Companies (CMC) rebate as it had not previously contributed to these costs in the past. With an increase of 9.8% in the value of Annual Income (AI) in this fee-block out-stripping the increase in this fee-block’s AFR, the rates have reduced by 1%. |
| A014 Corporate finance advisers | Annual income (AI-A14) |
£17.1m | 8.0% | -1.0% | 8.9% | The AFR for this fee-block has increased by 8.0% in line with the overall FCA AFR. With the value of Annual Income (AI) in A014 has falling by 1% and the AFR increasing by 8%, the rates have had to increase by 8.9%. |
| A018 Home finance providers, advisers and arrangers | Annual income (AI-A18) |
£21.0m | 10.4% | 7.9% | 3.8% | The AFR in A018 has increased by 2.3% above the overall FCA AFR because this fee-block does not benefit from the Claims Management Companies (CMC) or Cryptoassets rebates as it has not previously contributed to these costs. However, although the AFR has increased by 10.4%, this increase has been partly offset by the value of Annual Income (AI) in A018 increasing by 7.9%, resulting in just a 3.8% increase in the rate. |
| A019 General insurance distribution | Annual income (AI-A19) |
£34.7m | 10.4% | 7.4% | The AFR in A019 has increased by 2.3% above the overall FCA AFR because this fee-block does not benefit from the Claims Management Companies (CMC) or Cryptoassets rebates as it has not previously contributed to these costs. However, although the AFR has increased by 10.4%, this increase has been partly offset by the value of Annual Income (AI) in A018 increasing by 7.4%, resulting in just a 2% increase in the rate. |
|
| A021 Firms holding client money or assets, or both | Highest client assets (HCA) |
£4.4m | 10.8% | -2.4% | The A021 AFR has increased by 10.8% which is above the overall FCA AFR increase of 8.1%. This is because this fee-block does not benefit from the Claims Management Companies (CMC) or Cryptoassets rebates as it has not previously contributed to these costs. With the value of Highest Client Assets (HCA) falling by 2.4%, the rate has increased by 11%. |
|
| A021 Firms holding client money or assets, or both | Highest client money (HCM) |
£13.3m | 10.8% | 24.6% | The A021 AFR has increased by 10.8% which is above the overall FCA AFR increase of 8.1%. This is because this fee-block does not benefit from the Claims Management Companies (CMC) or Cryptoassets rebates as it has not previously contributed to these costs. Despite the increase in this fee-block’s AFR, as the amount of Highest Client Money (HCM) has increased by 24.6%, the fee rate has been cut by 8.8%. |
|
| A022 Principal firms – appointed representatives | Number of appointed representatives (NOAR/NOIAR) |
£6.8m | -3.9% | -4.1% | As the rates for this fee-block have been held at the same level as 2022/23, the AFR has been determined by the number of appointed representatives (ARs)multiplied by the flat fees (Appointed Representatives at £266 each and Introducer Appointed Representatives at £80 each). As the number of ARs and IARs has fallen by 4.1% which, together with a slight over collection in 2022/23, the AFR has been reduced by 3.9%. | |
| A023 Funeral plan intermediaries and funeral plan providers | Annual income (AI-FP) |
£1.7m | n.a. | n.a. | n.a. | This is the first year for raising fees for funeral plans. |
| CMC Claims management companies | Annual turnover (TOCMC) |
£0.5m | -73.7% | -25.8% | -89.3% | There is a rebate of £1.6m to the Claims Management Companies (CMC) fee-block this year. The rebate was generated after reconciling the final cost of bringing CMCs into FCA regulation against a £2.5m payment from the Ministry of Justice when it transferred regulatory responsibility to us. As a result, the AFR for the CMC fee-block has fallen by 73.7%. Despite the value of CMC Turnover (CMCTO) reducing by 25.8%, due to the large reduction in AFR the rate has reduced by 89.3%. We expect the CMC AFR to increase next year when it will no longer benefit from the £1.6m rebate and as such the rate will increase accordingly. |
| CC01 Credit-related regulated activities with limited permissions | Consumer credit annual income (CCI) |
£9.5m | 8.1% | 28.0% | 8.8% | The consumer credit AFR has increased in line with the overall FCA AFR at 8.1%. Although the total value of Consumer Credit Income (CCI) has increased by 28%, much of this income falls below the minimum fee threshold of £250k of income, so the income subject to the variable rate has actually reduced. This has resulted in an 8.8% increase in the rate. |
AFR = Annual Funding Requirement
Tariff Data = The total amount of tariff data reported for each fee-block. Not all tariff data contributes to the collection of the AFR as most fee-blocks have a minimum threshold below which firms do not pay fees in that fee-block. For example, in fee-block A013 the threshold is £100,000 of annual income. If a firm has less than this amount of annual income it will not pay a fee in the A013 fee-block. However, if its tariff data is above £100,000, then its fees are calculated based only on the income above £100,000.
For more information of the above changes, please see 2023/24 Fees Policy Statement.
FSCS levies
FSCS have reduced their funding requirement to £270m for 2023/24 which is £208m less than predicted in the November FSCS Outlook and lower than the £625m funding requirement for 2022/23.
This is because FSCS are using surplus funds carried over from 2022/23. So, CLHFI-1 (Home Finance Intermediation) will get £3.6m rebate, CLHFI-2 (Home Finance Provision) will get £1.4m rebate and CLDM (Debt Management) will get £0.5m rebate.
Additionally, there will be no levies for CLGID-1 (General Insurance Distribution), CLGID-2 (General Insurance Provision), CLIP (Investment Provision), CLII-3 (Investment Provision) and SC01 (Life & Pension Provision), whilst Deposit Acceptors, although paying £13.2m in management costs will receive a £9.2m rebate in their compensation costs so their total levy will be only £4m.
Read further details in the FSCS May Outlook publication.