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Mar 29, 2015

Its time for fee and cake

Its been another interesting week which saw the release, as I am sure my dedicated loan calculator chums will remember me saying some time ago of the FCA Fees and Levies for 2015/16. With a staggering increase in annual funding of 7.9% to a jaw dropping 481M it was clear that this was going to need some thought particularly with the recent recession. The sharpest loan calculators amongst you will be aware this was an increase in the previous year of over 35M. So the question on all your lips I am sure is just where is this money going to be spent. Simple finance as usual decided to take a closer look so you don't have to.

Simple finance fact 1. 16M staff costs and people investment

Simple finance fact 2. 11M I.T upgrades and investments

Simple finance fact 3. 2.4M recovery of scope

Simple finance fact 4. 79M Money advice service

Simple finance fact 1. 23.3M ombudsmen service

So where will the extra cash come from?

Well as we long suspected brokers and dealers will be hardest hit with a real terms increase of 10.2%. I fear this will be passed on to the consumer and those with loans will be left calculating the cost of this one for years to come.

Is change always for the better?

Generally the unstoppable march of progress is what makes us the way we are, there have been many times when this has not played out well but some consider the alternative of standing still and doing nothing a far worse option. When it comes down to FCA we must remember they are a new organization born from previous arrangements. This will certainly mean they will need to be flexible and need the funding to do so. Failure to regulate has already hit this country hard enough for one lifetime. I will leave it to each individual loan calculator to decide but one thing is for sure, change is afoot.

Until next time my loan calculator chums,

Take care from all at simple finance.

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