This consultation paper (CP) sets out our proposed policy changes to our fee and levy regimes. We are funded entirely by the fees and levies recovered from the firms we regulate – we receive no subsidies from other sources.
After listening to the views of firms at our roadshows and from early feedback to our fees consultation paper, we have reduced the proposed consumer credit application fees for small firms. Further information can be found in a Supplement to our Consultation Paper on fees. We are asking for comments on the supplement paper by 16 January 2014.
This forms part of our annual cycle of fees consultation. In October, we consult on any proposed changes to the underlying policy of the fee and levy regimes of the FCA, the Financial Ombudsman Service, the Financial Services Compensation Scheme (FSCS) and the Money Advice Service (MAS).
We do not consult on any proposals affecting the FSCS in this CP, but we do flag up the implications for the different bodies where appropriate.
Fees policy directly affects all firms regulated by us, but each chapter of this CP covers a different aspect of fees policy so will affect different types of firm. Table 1.1 of the paper sets out the fee-payers most likely to be affected.
Any firms that are considering undertaking consumer credit business after 1 April 2014 should read Chapter 2, which sets out our proposals for recovering the costs of the new consumer credit regime. These will interest firms already licensed by the Office for Fair Trading (OFT), firms holding or applying for interim permissions from us, and firms thinking of entering this market. Not-for-profit debt advice bodies, credit unions and community benefit societies will need to be aware of the concessions we are proposing for them.
Please note that the deadline for sending feedback to our fees consultation paper is still 6 January 2014. However, we are extending the deadline for sending feedback to Question 1 ‘Do you agree with our proposals for consumer credit application fees?’ until 16 January 2014.
We will consider your comments and publish our feedback along with our rules in our consultation paper on fee rates at the end of March 2014.
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