Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

FCA hikes fund manager levy 24% on AIFMD costs

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Big City Bright Future

Big City Bright Future

Big City Bright Future, the brainchild of BlackRock, is a three-week work experience programme for school leavers looking to forge a career in the City.

Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Read More
Your Business: Cover Star Club

Profile: change is the only constant for Quilter Cheviot

Profile: change is the only constant for Quilter Cheviot

This is not the first time we have profiled David Miller, but at the time of his previous appearance his company looked very different.

Wealth Manager on Twitter