“We use these to reduce our fees the following year (other than for the fees levied on the penalty payers themselves).”
The penalty rebates are currently estimated at £50.3mn overall and £4.3mn for the adviser fee block A.13.
Meanwhile the Financial Ombudsman Service's budget for 2023/24 will go down to £234.2mn, from £291.7mn currently, as approved by the FCA board in March 2023.
The levy on advice firms as a percentage of the Fos’ total levy will be 1.6 per cent, up from 2.3 per cent this year.
As for the Money and Pensions Service levy, made up of money guidance, pension guidance and debt counselling, advice firms will pay 3.8 per cent more for the money guidance allocation, from £1.7mn to £1.77mn in 2023/24.
However, for pension guidance, they will pay 16.9 per less from £50mn to £41.5mn.
The FCA said all these fees will be finalised in June/July, pending its consultation.
Earlier this week, the Fos said it will introduce a ‘proactively settled’ category for the way it reports business-specific complaints data.
As a result of its consultation and feedback received, the Fos said it will report cases as “proactively settled” where certain criteria are met.
It has also frozen its levy for the 2022/23 financial year, saying it recognises the pressures on businesses.
The Fos’s compulsory jurisdiction levy (CJ) will be maintained at £106mn, and the voluntary jurisdiction levy (VJ) will be reduced from £700,000 to £600,000.
Case fees will also be flat at £750.
sonia.rach@ft.com
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