FCA report- To charge ARMs for transaction report submission

The Financial Conduct Authority (FCA) has published a consultation paper which sets out policy changes to its fee and levy regimes.

FCA is proposing to introduce fees for approved reporting mechanisms (ARMs) which submit transaction reports from 1 April 2014.  The fees will contribute towards the maintenance and administration costs of its new Axway Gateway transaction reporting system which allows connectivity via the internet.  The
intention is that ARMs will pay for the system’s maintenance as well as the
FCA’s resources in monitoring and liaising with them, measured by the number of
transaction reports processed.

The consultation contains:

• proposals for consumer credit application fees (Chapter 2);
• changes in the way the FCA groups firms when setting its fees for them. 
  Introducing a common fee-rate for all investment intermediaries, rather than
  charging two rates depending on whether they hold or safeguard client money or assets, as at present (Chapter 3);
• clarification of the definitions of income the FCA uses as the basis for calculating the fees of insurance intermediaries (Chapter 4);
• proposals for the introduction of an annual fee for ARMs (Chapter 5); and
• sets out some technical amendments to the Fees manual and presents a new method for allocating the costs of the Money Advice Service (Chapters 6 & 7).

Feedback is requested by 6 January 2014 so that the FCA can publish a handbook notice containing the new rules in February or March 2014.

 Related Link:

http://www.fca.org.uk/static/documents/consultation-papers/cp13-14.pdf