PEER-TO-PEER lenders are likely to see their regulatory fees increase this year.
The Financial Conduct Authority (FCA) decides how much its annual regulatory fees will be every June, following a consultation in March.
The FCA said in March that its annual funding requirement (AFR) for 2018/19 is £543.9m, an increase of 3.2 per cent, which will go towards its operating costs and changes it is making for Brexit.
This increase will be footed by all firms regulated by the City watchdog, not just P2P platforms.
Depending on the type of regulated firm, a P2P lender could pay a minimum fee or one for consumer credit. Both types of fees could be increased by up to three per cent, according to the consultation document.
There is also a separate levy to help fund the Money Advice Service and Financial Ombudsman Service.
Invoices are sent out by the FCA in July, to be paid by September.
The FCA regulatory fees are calculated using criteria such as annual income or value of funds managed. For many P2P firms that became authorised in the past year, it could be the first time they see an increase in costs.
This article featured in the June edition of Peer2Peer Finance News. Click here to read the magazine online.