Financial advisers will see their Financial Conduct Authority fees rise by 1.5% in 2021-22 under proposals published today by the regulator.

The rise will take fees paid by firms in the A.13 fee block to £82.3m, from £81.1m the previous year. The A.13 fee block includes firms with advisory arranger, dealer and/or broker permissions.

The overall FCA budget is to rise by 4.5% to £636.5m.

The regulator has proposed not to increase its minimum fees by the 2% increase previously included in its ongoing regulatory activities budget, in order to protect the smallest firms from the impact of the pandemic.

It has also proposed to continue the extension of the time medium and small firms have for paying fees from two months to 90 days. This extension was announced last year to help firms struggling to deal with the pandemic.

Larger firms are expected to pay their fees under the usual payment terms.

Under the proposals financial advisers will also see £4.3m returned in rebates from the £50.4m retained penalties and fines pot.

The FCA has asked for any responses to the proposed changes by 25 May. Financial Planners can respond online on the FCA website. 

The regulator is also currently consulting on the Financial Ombudsman Service general levy, Money and Pensions Service, Devolved Authorities and illegal money-lending levies for the next financial year.