Read about the fees you will need to pay the FCA.
The FCA is funded by fees on the firms it regulates. CMCs will be asked to pay for their regulation in 2 main ways:
- application fees - one-off fee when you apply
- periodic fees - annual charge
When firms apply to be authorised by us, they pay a fee towards the costs of processing their applications. When setting the level of fees, we look at the complexity of the authorisation process and the amount of work involved.
- For smaller firms (turnover up to £1m), we propose to charge £1,200 for each application.
- For larger firms (turnover of more than £1m), we propose to charge £10,000 for each application.
Firms will be asked to pay when they apply for full authorisation.
Periodic fees are the cost of regulation for a year. Periodic fees are calculated on revenue: the more money a firm earns directly from claims management activities, the higher the fee will be.
The number of claims management permissions held by a CMC will not affect how much that firm will have to pay in periodic fees.
The Claims Management Regulator puts an upper limit on the fees payable by CMCs. The FCA will not apply such a cap. This brings CMCs into line with FCA standard policy that firms should pay in proportion to their market share.
The periodic fee will be calculated as follows:
- minimum fee (which we have proposed to be £500)
- variable rate (proposed to be £13 per £1,000, or part £1,000 of turnover above £100,000)
Firms will be invoiced for their periodic fee, when registering for temporary permission between January and March 2019. Once issued, it is payable within 14 days.
If a firm cancels its permission during the financial year, or if it has its permission taken away for any reason, the FCA will not refund the fee.