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Peer2Peer Finance News | May 27, 2019

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P2P lenders set to pay higher fees to City watchdog

P2P lenders set to pay higher fees to City watchdog
Marc Shoffman

PEER-TO-PEER lenders could see their regulatory fees increase by at least two per cent.

The Financial Conduct Authority (FCA) has released a consultation on its annual funding requirement for 2019/2020, revealing that it will need £558.5m from all regulated firms.

This is up from £543m last year and helps fund the City watchdog’s ongoing activities as well as the costs of preparing for Brexit.

There is a minimum fee for all FCA-regulated firms and a separate fee structure for consumer credit providers, which includes some P2P lenders.

Read more: Regulation special feature: Playing by the rules

Read more: Consumer credit regulation “largest” challenge FCA has faced

The regulator has proposed a 1.9 per cent increase in its minimum fee for all regulated firms to £21.4m for the next financial year, while consumer credit firms could see a three per cent rise in fees to £39.8m.

Depending on their size and regulatory permissions, firms may also have to contribute to levies for the Financial Ombudsman Service and the Money Advice Service, which is rebranding as the Money and Pensions Service (MAPS).

The Ombudsman budget is set to be increased to £331.8m for 2019/2020 up from £289.8m, while MAPS is to be given £117.6m.

Invoices are sent out by the FCA in July, to be paid by September.

Read more: FCA warns mid-cost consumer lenders could be ‘overwhelmed by demand’