Regulator increases annual funding requirement by 3.2% to £543.9m.
The Financial Conduct Authority (FCA) has budgeted for a total annual funding requirement (AFR) of £543.9m for 2018/19.
It also predicted a total EU exit cost of £30m to the regulator.
The figures were revealed in a consultation paper on fees and levies published alongside its Business Plan.
This is an increase of 3.2%, compared to the £526.9m budgeted for 2017/18.
Brexit
The regulator detailed that its AFR includes ongoing regulatory activities budget costs, costs relating to changes to its regulated activities and EU withdrawal.
It predicted it will spend £5.0m in EU withdrawal costs in 2018/19, which is an increase of 100% compared to the preceding year.
In addition, the watchdog budgeted £527.2m for operating costs, compared to £508.0m in 2017/18.
It revealed that total fees payable by regulated firms for the year will be £495.7m, an increase of 3.1% (2017/18: £480.8m).
The consultation paper details how the FCA proposes to allocate its fees across its fee-blocks, which include insurers, banks, fund managers and proprietary traders.
It noted that the consultation closes for feedback on 1 June 2018.
Brokers
In its Business Plan for the year, the regulator included a promise to focus a high level of resource on the regulatory implications of leaving the European Union.
It also stated that its key activities within general insurance would include publishing its interim findings on wholesale insurance brokers in Q3 2018.
This follows the enquiry launched last year aiming to assess how the wholesale market fosters innovation and competition.
FCA chief executive Andrew Bailey said: “We recognise that this year we need to dedicate a significant amount of resource to withdrawal from the EU.
“As a result, setting our priorities this year has involved a particularly rigorous level of scrutiny and challenge to focus on areas where we see the greatest potential for harm.”
Relocation
The FCA also revealed how much it would cost to run its current Canary Wharf HQ and its new building in Stratford, East London which it is set relocate to by the end of summer 2018.
The regulator noted that running both centres during the transition period would cost £20m.
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