Huw Jones

LONDON, (Reuters) – Britain’s market watchdog suggested a nearly doubled fee for authorised firms Tuesday in order to fund technology that helps identify and solve problems faster.

Financial Conduct Authority (FCA), proposed an increase in its minimum fee from 1,151 Pounds ($1,537) up to 2,200 Pounds for the fiscal year beginning April 2022. This is a significant change over the past decade.

The FCA stated, “As part its transformation into a more innovative regulator, it has committed to invest 120million pounds over three years in order to strengthen its capacity to identify individuals of concern.

Soaring financial scams are taking up more resources and the FCA is undergoing a shake-up to speed its enforcement decision-making after it was slammed for its handling of collapsed investment fund London Capital & Finance (LCF).

According to it, a more thorough scrutiny and better data will help lower the likelihood of unsuitable companies being approved in the first instance.

“This price hike is money well spent if it helps the FCA spot the next London Capital & Finance,” Simon Morris, a financial services partner at law firm CMS, said.

The British government has spent up to 120million pounds of taxpayer money in order to compensate LCF investor.

The FCA regulates approximately 60,000 businesses.

The application fees for overseas investment exchanges who plan to use untested technology would be increased by an additional 25,000 pounds.

According to the watchdog, concessions in fees will be kept for credit unions, community finance institutions, non-profit debt advisors, mutuals, and credit unions because of their “social purposes”.

The public consultation for the proposed proposals will close on January 31.

($1 = 0.7489 pounds)