Briefing Note 019/06
29 March 2006

An instalments plan with significantly improved terms has been succesfully negotiated to enable firms to again pay their regulatory fees by this method.

Graeme Ashley-Fenn, Director of Contact, Revenue and Information Management, Financial Services Authority said:

"Following the great success of the instalments plan introduced last year with 3,235 firms taking up the facility, we have facilitated an industry working group to review the submissions received in response to our invitation outlined in our Consultation Paper. Following careful consideration, the industry working group has secured significantly favourable terms for the industry with reduced rates compared to last year and with a guaranteed automatic acceptance to all FSA authorised firms. This facility will operate over a three year period with an annual review of rates.

Premium Credit Limited has been selected again as the preferred supplier by the industry working group to provide this facility as its terms and conditions were by far the most favourable and it has proved that it can run such a scheme extremely efficiently. Firms should be aware that they can, of course, make their own arrangements directly through other credit providers should they choose to do so, but we hope that the terms negotiated for the industry as a whole prove competitive.

The implementation and success of the plan is part of the FSA's public commitment to improve its business capability and effectiveness and in particular to make it easier for smaller firms to do business with the FSA. It also enable us to contain our overall administration costs by receiving payment of the single (FSA/FSCS/FOS) invoice."

Notes to editors

  1. The working group is comprised of representatives from interested trade associations, a member of the Smaller Businesses Practitioner Panel, and a representative from the Financial Services Compensation Scheme.
  2. Premium Credit Limited will again guarantee auto-acceptance to all FSA authorised firms with the rates negotiated by the working group being lower than the previous year with a ten month payment period. The trade associations within the working group have also negotiated more favourable rates for trade association member firms. The facility will be available for firms to utilise for payment of fees and levies invoices issued for the next three years, with an annual review of rates. To facilitate this recommendation, the necessary forms from Premium Credit will be enclosed with the FSA's invoices for fees and levies.
  3. Firms should be aware that similar arrangements through other credit providers are available to them. The FSA is not endorsing Premium Credit Limited over other credit providers but is assisting in the implementation of the working party's recommendation.
  4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection for consumers; and fighting financial crime.
  5. The FSA aims to promote efficient, orderly and fair markets, help retail consumers achieve a fair deal and improve its business capability and effectiveness.