7th April 2022
FCA at it again
The FCA has proposed to hike, as usual each year, its annual funding requirement for advisers from £82.3mn to £86.5mn, a mere £4.2mn!
The regulator said in its fee proposal document of the 7th April that its overall additional call for cash is estimated to go up by £26.4mn in 2022/23, an increase of 4.3 per cent from £613.7mn in 2021/22 figure to £640.1mn.
This is becoming the industry eaten by a regulatory type of tapeworm. As we know tapeworms can live up to 20 years metamorphosing, in this case, over each regulatory incarnation of Nasdim, PIA, FIMBRA, FSA and FCA.
Advisers become hosts to this regulatory infection simply as a result of being involved in a regulated financial services business. Host symptoms can include:
- Nausea.
- Weakness.
- Diarrhoea.
- Abdominal pain.
- Hunger or loss of appetite.
- Fatigue.
- Weight loss.
- Vitamin and mineral deficiencies.
For many advisers hearing this news some or all these symptoms will no doubt be ‘presenting’ today.
Add to that the ongoing impact of increasing PI premiums, FOS costs, ever increasing FSCS calls having to be paid by fewer firms all means that the worm continues to grow.
The FCA have downsized their Olympic Park office space, there should be some cost savings there surely?
But I guess that the cost of compulsory unconscious bias training, replacing 323 lost laptops and November 2021’s confirmation that £5m (very close to that £4.2mn increase) was being spent on more laptops for employees WFH will need to see this being paid for.
Added to that the Unite union which represents FCA staff. It said members voted by 87 per cent in favour of strike action in its non-binding ballot, which closed on January 31 this year.
The FCA is currently ‘consulting’ on changes to its employment package.
Extraordinarily, at a time when the government is seeking civil service pay restraint, most staff could expect to see a 5% increase at least and many getting quite a lot more.
The FCA is trying to justify the fee hike by noting the number of advice firms under its watch will decrease from 12,301 to 11,901 in 2022/3.
These may be reasons why an increase is due, but not a justification.
Just a thought, do e-mail me yours.
Comments (4)
Steven Farrall 08/04/2022 11:50
At the current rate of Adviser attrition and FCA/FOS growth in numbers, there will soon be more of them than us.
They will all be working from home on New Laptops, part time, filling in their expenses sheets, between 9 and 5 we hope, until there are no Financial Advisers left!
I feel physically sick, and stressed every time something from The Regulator arrives.
I have had enough, and cannot go on, despite running a Great Chartered IFA, SUCCESSFULLY FOR OVER 20 YEARS WITH OVER 350 MILLION FUM, AND GREAT PROFITABILITY!
They are Utterly Unaccountable, and now seem to be inciting complaints on the Witch Hunt of Final Salary Transfers! Despite The Treasury Commitment to Pension Freedoms.
Firm name withheld as requested
Withheld 08/04/2022 12:06
Firm name withheld
Withheld 08/04/2022 16:36
Your list of symptoms are all accurate and I cannot wait to wake up in the morning in my converted American School bus and not have to think about the regulator ever again.
Having been in the industry since 1984 I have lived, through the nightmares of ever increasing and irrelevant regulatory impositions on an industry which by and large has worked well. I have seen the effect of endless stifling rules and have come to literally hate the regulator (my mother told me never to say I hate something or someone as it means you want to kill it/them); I hate the FCA.
I could go on, but I would rather write a book and earn some money selling it.
Name and firm withheld was requested
Withheld 11/04/2022 16:34
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