Fund industry faces steep hikes in FCA levies

The Financial Conduct Authority has proposed a sizeable hike in annual funding requirements for asset managers in 2014/15 due to the cost of AIFMD implementation.

In its business plan for the year ahead, the FCA proposed an AFR of £43.4m for portfolio managers, up 11.7% on 2013/14's £38.8m fee, saying the increase reflected set-up costs for the implementation of the Alternative Investment Fund Managers Directive. Fund managers will receive an estimated rebate of 20% on this figure, the FCA added, based on retained penalties from 2013/14. That is fractionally higher than the £8.2m rebate the regulator estimated it would provide as part of last year's charging plans. Managers and depositaries of investment funds, and operators of collective in...