FCA budget rises 8% to £519m

The FCA has attributed the increase to the inclusion of Consumer Credit in operating costs for the first time. Excluding Consumer Credit, the FCA budget has reduced by £7.6 million.

In total, financial services firms will pay £469.8m in regulatory fees.

Home finance providers, advisers and arrangers will see fees rise by 7.1%, reflecting the costs of implementing MCD.

However due to financial penalties from the previous year, total fees collected from fee payers in 2016/17 will reduce by £49.6m.

In 2015/16, the FCA increased minimum fees payable by firms for the first time in four years. It has confirmed that it will leave minimum fees for 2016/17 unchanged.

Tracey McDermott, acting Chief Executive of the FCA, said:

"It is our job to make markets work well. Ensuring effective and proportionate regulation which tackles the problems of the past without inhibiting developments of the future is at the heart of what we do. Over the next year we will continue to embed this sustainable approach to regulation in everything we do.

"The majority of our resources remain devoted to our core business and today we have set out the outcomes we want our work to achieve. Transparency is important to us, and this plan will give all stakeholders an understanding of our focus for the year ahead."