APCIMS disappointed at large fee increases proposed in FSA's Business Plan 2007/08

6 February 2007

The FSA published today its Business Plan for 2007 - 08. Whilst the plan focuses on the FSA's move towards more principles - based regulation, APCIMS is concerned by the regulator's proposed increases in the fees it charges firms.

APCIMS Chief Executive David Bennett comments:

"In a year that firms are bearing the heavy cost of implementing MiFID and Capital Adequacy, a 10% increase, more than triple the rate of inflation and in excess of a three fold increase on the previous years rise is insensitive. The reality is the levy on many of our firms will be in region of 13 - 14%, notwithstanding the other pending levies from Financial Ombudsman Service and Financial Services Compensation Scheme."

APCIMS will now consult with its member firms over the Business Plan 2007 - 08 and the Fees consultation paper (CP07/3). The trade association is concerned that the FSA has not included activity based costings in its plan and therefore it is difficult to work out the apportionment of fees across the different sectors, and to what extent APCIMS firms may be cross subsidising other categories.

Ends

Notes to the editor:

APCIMS

APCIMS, the Association of Private Client Investment Managers and Stockbrokers, represents the interests of the vast majority of private client stockbrokers and investment managers in the UK, and through them more than 12 million individual shareholders.

For further information call:

Kevin Sloane, Head of Information.
Mobile 07917 406939 - Email kevins@apcims.co.uk

APCIMS Office, 020 7247 7080