The UK Financial Conduct Authority (FCA) has published a consultation paper (CP25/7) on its rates proposals for regulated fees and levies for 2025/26 and proposed amendments to the FEES manual. The annual funding requirement (AFR) required for the FCA to deliver its programme of work for the year is £783.5 million, which includes the baseline cost of ongoing regulatory activities and exceptional projects. The FCA's key proposals, among others, include adjustment to periodic fees, application fees, and levies for the Financial Ombudsman Service, Money and Pensions Service and other government departments with plans to also introduce a new fee-block (CC4) for motor finance lenders involved in discretionary commission arrangements (DCA) between 2007 and 2021 to recover costs of the FCA's review following the Court of Appeal ruling on the motor finance commission complaints. The consultation closes 13 May, with final rules expected to be published in early July.
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