FCA plans fee structure changes while overall costs set to fall for regulated firms

The consultation comes as part of its wider work programme for 2025/26, in which the regulator is also looking to make it easier for firms to test innovative products and support new businesses applying for regulatory approval.

The FCA’s chief executive Nikhil Rathi said: "We’re committed to being a smarter regulator - one that supports growth, helps consumers and fights crime. Our annual work programme details what we will deliver to achieve these goals.

"And today, we’re setting out how we’ll go further to help firms that want to join our markets with greater support for the application process and to test innovative products."

The consultation comes as reports in the Financial Times suggest the FCA is planning on cutting the fees paid by companies it oversees for the first time in more than a decade.

This is because – while the annual funding requirement would increase by 3.8% in the financial year to April – it has doubled the amount of money it retains from financial penalties to a record £70.5m. These retained funds are used to provide a rebate on fees paid by regulated firms.

Therefore, after deducting the £70.5m rebate expected from retained fines, the total fees due to be collected are set to fall by about one per cent to £713m.

These rebates on fees are shared with regulated companies except for those that paid fines in the year to April.