General insurers’ fees still to rise

Brokers can expect a drop in fees for the next financial year, as the FSA has published its final annual guide on the subject.

The FSA put out a report in February that predicted brokers’ FSA fees would drop from £24.9m in the 2011/12 year to £24.2m this year, and that FSCS fees would drop from £69.5m to £57m.

The new FSA guide, Policy Statement PS12/11, shows that brokers’ FSCS fees will remain at £57m but that their FSA fees will drop an additional 3.1% to £23.3m for next year.

The regulator attributes the general 18% drop in FSA fees across all financial firms to a cut in its infrastructure investment and a £10.6m surplus carried over from last year.

General insurers’ 2012/13 FSA fees will be £38.9m, down from the predicted £40.1m earlier this year but up from the £29.4m charged last year.

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