The regulator said it would engage early with stakeholders and hoped to start the review over the summer before issuing discussion or consultation papers.
It said its “early thoughts” on its review would be a back to basics approach to explore whether or not the industry should be segmented.
At the same time, it said it would look at alternative ways of segmenting using fee-blocks as it does now.
As the review progresses the FCA said it would also investigate the basis for allocating funding requirements to specific segments, and how it recovers allocated costs from firms that fall within the different segments.
“This we see as including exploring alternatives to the existing ways we allocate our funding requirement across fee-blocks and recover allocated costs within them,” the consultation paper said.
It added: “We are conscious of the other policy development demands we place on firms and their representatives. However, this coming first year we are operating seems an appropriate time to have an open dialogue with the industry on how we recover our funding from them.”
The FCA said it would engage with the industry until July and then evaluate responses in order to firm up which proposals to develop. In October/November it will issue a discussion paper followed by a consultation. Earliest implementation will be in 2014/15.
You can submit online consultation responses here.
