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FCA hikes fund manager levy 24% on AIFMD costs

by Robert St George on Mar 31, 2014 at 10:24

FCA hikes fund manager levy 24% on AIFMD costs

Fund managers will see regulatory fees soar ahead of the fee increases imposed on other financial firms.

The Financial Conduct Authority (FCA) plans to raise what it requires of fund managers from £10.8 million in 2013/14 to £13.4 million for 2014/15, an increase of 23.6%.

For portfolio managers the proposed levy will climb from £38.8 million to £43.4 million, an 11.7% hike.

‘These increases reflect the recovery of our set-up costs for the implementation of the Alternative Investment Fund Managers Directive (AIFMD) in 2014/15,’ the FCA explained.

The FCA consultation paper, however, includes a mooted 20.1% rebate to be applied to the 2014/15 fees for fund managers, and of 10.1% for operators and trustees of collective investment schemes and of 17.7% for firms holding client money or assets. 

In total, the FCA is only looking to lift its industry-wide levy by 3.3% to £446.4 million.

The FCA has also adjusted how fund houses will have to contribute to the Money Advice Service. Fund managers have had their obligation cut by a third from £3.6 million to £2.5 million, but the burden on operators and trustees of collective investment schemes has surged by 41.4% to £1.2 million and on firms holding client money or assets from nothing to £1.6 million.

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