P2P platforms face regulatory fee hike
Peer-to-peer lenders are braced for higher regulatory fees from next year.
The Financial Conduct Authority (FCA) has revealed a hike in fees for all regulated firms to help fund its plans to be a “more innovative and assertive regulator”.
The City watchdog has proposed increasing its minimum fee, paid by most regulated firms including P2P lenders, from £1,151 to £2,200.
It also wants to merge a fee charged separately to consumer credit lenders into the minimum fee.
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“The fee increase would better reflect the costs associated with the authorisation and supervision of 51,000 firms throughout the UK,” the FCA said.
“As part of its transformation to a more innovative and assertive regulator, the FCA has committed to invest £120m over the next three years to strengthen its ability to identify firms and individuals of concern.
“These changes are designed to benefit both consumers and firms.”
Justifying the increase, the FCA said the minimum fee block was set at £1,000 a decade ago and remained at that level until 2016 when it has risen in line with its annual funding requirement.
Regulatory fees were frozen during the pandemic.
The figures are up for consultation until the end of January 2022.
Once agreed, invoices are sent out by the FCA in July, to be paid by September.
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