The Association of Professional Financial Advisers (APFA) has today written to the Financial Conduct Authority with its views on how their fees methodology might work in future.
The full letter from APFA to the FCA can be read here: http://www.apfa.net/policy/responses/apfa-letter-to-peter-cardinali-FCA-fees-review-july-2013.pdf
Chris Hannant, Director General at APFA, said: “The way the regulator allocates fees is a priority issue for advisers, and something we’ve explored a lot this year. When it comes to collecting future fees, we strongly believe that a common measure approach, based on income, will be simpler and more predictable than the current fee blocks. It would effectively use size as a proxy for risk and provide a more straightforward link with an organisation’s share of the FCA’s bill. Crucially, it would also need less administration by the regulator – meaning it would be cheaper.
“We also want to see the FCA committing to fixing its budget for three years to give advisers more certainty about their future costs.
“We will continue our dialogue with the FCA on this issue, to ensure that future fees for the industry are fair, proportionate, transparent and easy to understand.”