The FSA has revealed that 66 per cent of firms will see its fees go down, stay the same or go up by under 3 per cent, with a small broker with an annual income of under £70,000, paying the minimum fee paying on average £698 for 2006/7, up from £688 in 2005/6.
The percentage of firms seeing a decrease, no change or a sub-3 per cent rise has gone down from the 82 per cent predicted by the FSA consultation paper in February.
Graeme Ashley-Fenn, director of contact, revenue and information management division at the FSA, said: "Regulatory fees are essential for the FSA to undertake its statutory obligations and promote efficient, orderly and fair markets. We are pleased to note that there are no substantial changes between the final fee rates we have published and those proposed in the consultation.”
The FSA also announced it would be holding a consultation in July on the proposed impact on fees of the regulation of the home reversion market.
Tony Jones, managing director of Pink Home Loans, said: “The FSA looks like they are being quite conscious of the cost of regulation for brokers. The figures seem quite reasonable but it will be interesting to see the affect of equity release as if the costs are too high they will push people out of the market.”
Stuart Wilson, managing director of Equity Release Advisory Service, said: “The costs won’t be more in terms of regulation but will be in terms of training and personal indemnity insurance so there will be an indirect increase. This will also have a knock-on effect on clients as fees for advice will become the norm.”
