WIREDGOV

The Financial Services Authority (FSA) today published the final FSA fees and Financial Ombudsman Service (FOS) levies for regulated firms for 2007/08.

The FSA has finalised fee rates for 2007/08 at levels that, for most firms, are lower than those it proposed in February 2007. This is for several reasons, including firms' higher than expected business volumes as well as greater numbers of firms in certain fee blocks.

In nearly all fee blocks, increases in the minimum fee (the basic fee that all firms pay) have been capped at 3%, benefiting around half of all regulated firms which only pay the minimum fee.

Graeme Ashley-Fenn, Director of the FSA's Contact, Revenue and Information Management Division, said:

"We are pleased to announce that the FSA fee rates are lower than those proposed in the consultation, but we recognise that any increase will concern some of our fee payers. The FSA's expenditure has increased this year, mainly due to higher Financial Capability and IT budgets and the cost of moving towards more principles-based regulation, but the investments being made will enable us to increase our effectiveness and help us to deliver our statutory objectives.

"We are committed to making it easier for firms to do business with the FSA, and firms will be able to use our online Fee calculator to get an indication of the fees they will actually pay."

Further information on fees is available from our website and the Fees Helpline on 020 7066 1888.

Notes to editors

1. Firms can access the Fee Calculator on the FSA website.
2. The Consultation Paper (CP07/3) setting out the regulatory fee and levy proposals for 2007/08 was published in February 2007.
3. Feedback on CP07/3 and the final FSA fees and FOS levies for 2007/08 were published in Policy Statement (PS07/7) on 31 May 2007. Financial Services Compensation Scheme management expenses levies for 2007/08 were finalised in March 2007, see Handbook Notice 64. PS07/7 also contains the Consolidated Policy Statement on fee-raising arrangements, which provides an overview of the FSA's fee-raising arrangements; firms are encouraged to read this in conjunction with the Fees Manual in the FSA Handbook.
4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
5. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.