FOS levy is set to rise by 170% in 2011/12
The FSA’s annual budget has topped half a billion pounds for the first time.
The FSA announced on Tuesday that its proposed Annual Funding Requirement (AFR) for 2011/12 will be £500.5m, a 10.1% increase on this year’s figure of £454.7m.
The FSA consultation paper, outlining the regulatory fees financial service companies’ fees, also shows that the Financial Ombudsman’s Service levy is due to rise 169.5% from £17.7m in 2010/11 to £47.7m in 2011/12. This is partly due to the spiralling volume of payment protection insurance-related queries in the last two years.
The document shows that the proportion of the FOS’s resources devoted to general insurance-linked complaints is predicted to rise from 21% to 36.8% next year. The paper says: “This [increase] reflects a continuing increase in the number of PPI cases.”
The FSA paper says that expenditure on the implementation of Solvency II, which is collected via a special project fee applied to insurance firms, is due to increase from £29m to £46.4m over the next year.
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