Scam-wary UK financial watchdog plans to double fees

The UK market watchdog on Tuesday proposed a near-doubling of the fees it charges licensed companies to pay for technology that can detect and resolve problem businesses faster. The Financial Conduct Authority (FCA) has proposed that its minimum fee, which has remained largely unchanged over the past decade, would increase by 91%, from 1,151 pounds ($ 1,537) to 2,200 pounds for the fiscal year beginning in April 2022.

“As part of its transformation into a more innovative and assertive regulator, the FCA has pledged to invest £ 120million over the next three years to strengthen its ability to identify the businesses and people affected,” said he declared. The surge in financial scams is consuming more resources and the FCA is undergoing a reshuffle to speed up its enforcement decision-making after being criticized for its handling of collapsed investment fund London Capital & Finance ( LCF).

Further scrutiny through better data will reduce the chances of authorizing unsuitable businesses in the first place, he said. “This price hike is money well spent if it helps the FCA spot the next London Capital & Finance,” said Simon Morris, financial services partner at law firm CMS.

The UK government is spending up to £ 120million of taxpayer money to compensate LCF investors. Other changes proposed by the FCA, which regulates around 60,000 companies, include the use of market risk and trading volumes, rather than number of traders, to calculate total fees for large banks and companies. investment.

There would also be a £ 25,000 increase in the application fee for overseas investment scholarships that intend to use new or untested technology. The fee concessions for credit unions, nonprofit debt counselors, mutuals and community finance organizations will be maintained because of their “social purpose,” the watchdog said.

A public consultation on the proposals ends on January 31. ($ 1 = 0.7489 pounds)

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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