Its consultation paper showed this would result in a total fee of £23.5m, up from £23m the year before.
Intermediaries advising on general insurance also face a 2.2% rise to £38.8m, up from £38m previously. Principal firms of appointed representatives could see a 3% increase in the fees and levies paid to the FCA, up from £7.1m to £7.4m.
The Money and Pensions Service (MaPS) levy applied to mortgage advisers is proposed to be 32.2% higher than last year, rising to £330,000, while general insurance advisers will see the same levy increase to £540,000.
The FCA predicted the number of mortgage advice firms would contract by 1.7% this year, falling to 5,074.
The regulator said its annual funding requirement to deliver its work this year was £783.5m, comprising its baseline cost of regulatory activities and exceptional projects.
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The budget for regulatory activities will rise by 2.5%, a smaller increase than the previous year’s 6.25% change.
The FCA will start recovering the costs of two exceptional projects this year, motor finance complaints and the development of the regulatory regime for ESG ratings providers, which are set to be brought into its remit this year once government legislation is finalised.
This work is expected to cost £3m and the regulator will consult on proposals for the future regulatory regime once legislation is complete.
