In November 2023, the FCA published its consultation paper on FCA fees CP23/22: Regulatory fees and levies: policy proposals for 2024/25.
The FCA says it plans to remove the Bank of England base rate from the calculation of the proxy measure used by certain consumer credit firms. The proxy is currently defined as the base rate plus 5%. The FCA’s proposed action will leave the measure at 5%, rather than 10.25%.
The new definition will come into effect from 1 April 2024 and will therefore affect firms’ 2024/25 fees. Fees will be based on firms’ income for the 2022/23 financial year.
Many firms will already have submitted their data using the current definition. So the FCA is inviting consumer credit firms to resubmit their data in anticipation of the new definition coming into force.
The regulator says it will be sending out more detailed guidance soon.