The original proposal made by the MAS and outlined in January’s consultation document (CP13/2), suggested that fees should be paid according to the way the service is used.
This would have replaced the current method whereby fees are raised according to the FCA’s funding blocks.
Adviser MAS fees have consequently dropped just 42%, from £4.6m to £2.7m, rather than the 93% drop to £300,000 as was proposed in CP13/12.
The proposal was overturned because advisory bodies and those representing building societies expressed concerns about the short notice given to the industry.
The new method will see 75% of the fees raised according to the original method, and 25% raised according to the method proposed in CP13/2.
The original proposal was only intended to be a temporary method, pending the MAS proposing an alternative to be consulted on during 2013/14, with a view to implementing it in 2014/15.
