The FCA Just Set Its 2026/27 Fees — Here's Why That Trickles Down to Your Investment Costs

Every year, the Financial Conduct Authority sets out how much it costs to run itself — and every regulated firm in the UK, from your bank to your investment platform, pays into that bill. On 2 July 2026, the FCA published Policy Statement PS26/14, confirming its final fees and levies for 2026/27. It's a technical document, but the numbers matter because firms typically pass at least some of this cost on to customers through charges.

What the FCA is charging firms

The FCA's total annual funding requirement for 2026/27 is £788.9 million. However, £72.4 million of financial penalty income retained from 2025/26 enforcement fines is being used to offset this, reducing the amount firms actually have to pay to £716.5 million — a modest 0.7% increase on the previous year, according to Global Regulation Tomorrow. The fee calculation also rolls in charges that fund the Prudential Regulation Authority and the Financial Services Compensation Scheme levy, meaning this single invoice effectively funds three separate layers of UK financial protection.

One change worth flagging for anyone who has ever complained to their bank or broker: from 2026/27, firms will receive a £2,000 case fee discount each financial year on the fees they pay for cases referred to the Financial Ombudsman Service, a modest easing of the cost firms face when customers escalate disputes. Minimum and flat-rate fees are also rising in line with the FCA's own operating cost increase of roughly 1%, with staged increases continuing for A-block and consumer credit minimum fees. Invoicing for 2026/27 fees began in July 2026.

Why this matters to you, not just to firms

Regulatory fees are a small but real input into what your bank, fund manager or investment platform charges you. When the FCA's own costs rise, firms typically build that into their fee structures over time — it's one of several factors (alongside fund management costs and platform charges) that make up the ongoing cost of investing. This is a separate workstream from the FCA's parallel consultation on simplifying how investment platforms and advisers disclose their costs to customers, and distinct again from the FCA's broader rulebook-streamlining work for asset managers — three different strands of the same regulator working on cost and disclosure from different angles this year.

For context, other regulators fund themselves similarly: the SEC in the US charges registration and transaction fees to funds and exchanges, while ASIC in Australia operates a cost-recovery levy model charging regulated entities directly — the UK's approach of a single combined FCA/PRA/FSCS fee is broadly comparable in principle, if not in exact mechanics.

Key Numbers

• FCA total annual funding requirement 2026/27: £788.9 million (Global Regulation Tomorrow)
• Retained penalty income offsetting fees: £72.4 million
• Net amount payable by firms: £716.5 million, up 0.7% year-on-year
• New annual FOS case fee discount for firms: £2,000
• Policy statement published: 2 July 2026 (FCA PS26/14)

Sources

• PS26/14: FCA regulated fees and levies 2026/27 — FCA
• FCA publishes policy statement on regulated fees and levies 2026/27 — Global Regulation Tomorrow
• CP26/11: FCA regulated fees and levies: rates proposals for 2026/27 — FCA

Educational content only — not financial advice.