What FCA Authorisation Fees Actually Cover
FCA application fees are not just a single charge to be paid. There are actually a number of different levies that make up the total amount you need to pay as part of your FCA authorisation fees.
The Application Fee
The Application Fee is charged on a one-off basis and can be up to several thousand pounds depending on the activities you are applying to carry out with your firm and the type of firm you are. Application Fee tariff information is published on the FCA’s website to enable firms to establish in advance the applicable band (i.e. fee) for their application.
The Annual Periodic Fee
The annual Periodic Fee is paid each year by an FCA authorized firm. This is typically billed based upon a financial measure (such as the firm’s income) which varies depending upon the type of financial activity which the firm conducts. The fees derived from the FCA’s ongoing supervision and enforcement work.
The FSCS Levy
The FSCS Levy: This is an annual fee that is used to fund the compensation that is paid by authorized firms to customers of those firms who have suffered financial loss as a result of that firm’s failure. The share that a firm pays is calculated using a combination of the firm’s tariff class and a financial measure set out in the way the FCA sets its annual fees and levies.
The FOS Levy
For FOS there is a flat levy and a case fee for complaints referred to the FOS service by firms. Most small firms pay only the flat levy on the very few complaints they receive.
The MaPS Levy
The MaPS Levy is a small levy which is used to fund the free money guidance service provided by Money and Pensions Service (MaPS) to the public.
Estimating Your Total Bill
You can then estimate your total charge by adding together the 5 elements above using the FCA’s fee calculator, and the relevant tariff tables on the FCA’s website, prior to application for authorization.