Fund manager contribution to FSA levy jumps 32%

Fund managers will contribute more than £37m to the FSA's total funding requirement for 2012/13, an increase of 32.4% on last year.

Fee block A7, which comprises fund managers, will pay £37.3m, up from £28.2m in 2011/12, the regulator proposed today.

Overall, the FSA's annual funding requirement (AFR) for 2012/13 will be £578.4m, up from £500.5m in 2011/12 and a gross increase of 15.6%.

Advisers and arrangers - including all advisory businesses which do not hold client money - will pay £38.4m towards the AFR, a 3.4% reduction on last year.

The minimum fee for small firms has been kept at £1,000, and the FSA said the largest firms will shoulder most of the increase in total AFR.

This is likely to be the FSA's final funding requirement before it splits into the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) next year, and Hector Sants, the FSA chief executive, said this explained the increase in overall funding.

"Much of the increase in AFR is the result of the additional resources needed to implement the new regulatory structure but these costs for the restructuring are in line with government forecasts," he said.