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FCA announces fee change proposals for principal firms

ended 03. December 2024

In a new consultation, published last week, the FCA said it is proposing to replace the flat-rate fee model with a variable fee model for principal firms of ARs. It said this was in order to recover the revenue it needs. Read all about it on FTAdviser >> here <<. Any thoughts on how this could impact brokers and networks, and potentially even consumers indirectly (if at all), send them across. 

2 responses from the Newspage community

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Simon Bridgland
Broker at Charwin Private Clients
The experience of many firms leaves a lack of confidence in what the role of the FCA is. Tales of nit picking are always heard, fines doled out for reporting a nil complaints register a day late, so it’s not surprising to feel aggrieved by any change which will result in an increase. I would think the A22 fee block may not be as lucrative for the FCA as it was in 2021 when launched, given the rate reduction in AR numbers at some networks. Perhaps they would be better to encourage and inspire new blood to an industry which is in dire need of advisers to fill the advice gap and entice firms to want to employ advisers. Average Joe would be hard pushed finding an adviser on your typical high street nowadays.
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Editor
David Stirling
Independent Financial Adviser at Mint Wealth
Anyone who has tried to use the FCA calculator to work out potential fees will already know how painful and bewildering the process is. How about simplifying the whole process with an overhaul instead of trying to penny pinch on new deals for existing businesses.