FCA Fees 2026/27: What Changed and How to Model It

How FCA Fees Actually Work

The FCA runs an annual fees cycle. Each spring, the FCA publishes a consultation paper (CP) on proposed fees for the new fee period, seeks industry response, and then publishes a policy statement (PS) confirming final fee rates by early summer. The new fee period runs from 1 July to 30 June. Invoices are issued through the summer, with payment due typically within 30 days of the invoice date.

A firm's total FCA bill is the sum of four principal components: (1) the FCA periodic fee, calculated by fee block; (2) the FOS (Financial Ombudsman Service) general levy; (3) the FSCS (Financial Services Compensation Scheme) levy, which is often the largest single line and the most variable; and (4) the MaPS (Money and Pensions Service) levy. Some firms may also pay a Consumer Duty related levy or specific sector levies depending on their permissions.

The FCA periodic fee is calculated using a tariff data measure specific to each fee block — for many blocks this is modified income or annual eligible income. The reference period is the firm's most recent audited accounting period ending in the calendar year prior to the fee year. So the 2026/27 fee draws on financial year data from calendar year 2025 for most firms.

The Fee Blocks That Matter for Fintechs

The FCA's fee blocks (labelled A.1 through A.19 for authorised firms, plus specific blocks for payment institutions, e-money institutions and consumer credit) map firm types to fee schedules. The blocks that apply most often for fintech firms:

Each block has a minimum fee (below the first tariff band) and then rates that increase across bands. A small authorised firm typically pays the minimum fee only. A larger firm crosses tariff bands and pays materially more.

The FSCS Levy — Usually the Biggest Line

The FSCS levy funds compensation for consumers of failed regulated firms. It is calculated by class, with each class covering a specific set of products (deposits, investments, home finance, general insurance, etc.). Firms pay the levy for the class in which their permitted activities sit.

The FSCS levy is materially more volatile than the FCA periodic fee, for two reasons. First, if a large firm in a class fails during the fee year, the compensation payments to consumers of that firm are funded through a class levy that can push the levy above the plan for that year (interim levies). Second, the FSCS management expenses are recovered through the levy and can vary with case volume.

For 2026/27, firms in the investment intermediation and pensions advice classes have seen materially variable levy movement over the past three years driven by specific firm failures. For any firm sitting in those classes, a defensible P&L model should carry a contingency of 15 to 30 per cent above the notified levy.

The FOS and MaPS Levies

The Financial Ombudsman Service general levy funds the FOS's costs of dealing with complaints from consumers about regulated firms. It is a flat-rate levy per block plus a case fee (per case referred to the FOS above a free case threshold). For firms with meaningful consumer complaints volume, the case fee is often the more material line.

The MaPS levy funds the Money and Pensions Service. It is calculated on a similar basis to the FCA periodic fee, using the same tariff data measure, applied at a different rate.

Together, FOS and MaPS levies typically add 15 to 40 per cent to the FCA periodic fee for a typical fintech, depending on the fee blocks and the case volume.

How to Model the 2026/27 Line

A defensible model of the 2026/27 fee line uses the following approach:

1. Identify all applicable fee blocks and levy classes. Use the firm's permissions and the FEES sourcebook (see FEES 4.4 for fee blocks; FEES 6 for FSCS classes) to build the complete list.
2. Retrieve the 2025 tariff data. For fee blocks based on annual eligible income or similar, this is the audited financial year data. For fund managers, it is average funds under management for the reference period. Ensure the data used is the same data submitted on the GABRIEL / RegData reporting stream.
3. Apply the 2026/27 fee rates. The rates for each block, band, and levy are published in the fees policy statement and on the FCA fees calculator.
4. Add contingency to the FSCS line. A 15 to 30 per cent buffer above the notified levy is prudent, particularly for firms in classes with recent firm failure volatility.
5. Compare to 2025/26 actuals to identify the drivers of the change. A rise driven by tariff data (bigger firm, more income) is different from a rise driven by rate changes (FCA cost recovery increase). Communicate the drivers to the board separately.

What to Say to the Board

For the July or August board meeting, when the fee notification is likely to have arrived, the CFO's briefing on the 2026/27 fee line should cover four things:

1. Year-on-year change, split by driver. Tariff data movement (business growth), rate changes (FCA cost recovery decisions), FSCS class impact (any specific firm failure driving up the class levy), permission changes since last year.
2. The permissions review outcome. Any permission dropped or added since the last cycle, with the resulting impact on the fee blocks and levy classes.
3. The FSCS contingency assumption. The notified levy plus the buffer, with reasoning.
4. Payment timing and cash impact. When the invoices land and when they must be paid, so the treasury team can position the cash accordingly.

Key Takeaways

• The FCA's 2026/27 fee period started on 1 July 2026. Invoices typically arrive July to September; payment window is 30 days from invoice date.
• The total bill is the sum of FCA periodic fee, FOS general levy, FSCS levy and MaPS levy. Each is calculated on a different basis.
• The FCA periodic fee is calculated by fee block using tariff data from the firm's most recent audited financial year (calendar year 2025 for the 2026/27 fee period for most firms).
• The FSCS levy is the most variable line — for firms in classes with recent firm failure volatility, a 15 to 30 per cent contingency above the notified levy is prudent.
• FOS and MaPS levies typically add 15 to 40 per cent to the FCA periodic fee for a typical fintech.
• Annual permission review is high-return. Dropping unused permissions typically reduces the annual bill by 5 to 15 per cent without operational impact.
• Brief the board on year-on-year change split by driver — tariff data, rate changes, FSCS class impact, permission changes.