Interest rates of 3.35% (9.2% APR), with a rate of 2.85% (7.8% APR) for trade association members, have been negotiated and agreed for 2007/08 for firms wishing to pay their regulatory fees and levies invoices by instalment.
In 2006/07, over 3,800 firms chose to pay by instalment, following the agreement reached by an FSA-chaired working group - which included representatives of several trade bodies - to ensure that this facility would be available for three years. Premium Credit Limited has again been selected as the preferred supplier by the working group, and will continue to guarantee auto-acceptance to all FSA authorised firms.
Graeme Ashley-Fenn, director of contact, revenue and information management at the FSA, said: "I am delighted the FSA has again been able to negotiate very competitive rates for our authorised firms. The option to pay by instalments is a key part of making the FSA easier to do business with and is especially valued by smaller firms."
Chris Cummings, director-general of the Association of Independent Financial Advisers (AIFA), added: “Having campaigned for the introduction of the scheme, we are pleased that it has been such a success and that members will continue to benefit from preferential rates and the ability to improve their cash flow. This is a good example of trade bodies and FSA working together to bring about a positive outcome for firms.”
The FSA is aware that there are other suppliers which provide a similar service, and therefore choosing which supplier to use is a decision for individual firms.
