# How much do FCA fees and the FSCS levy cost a small financial advice firm in 2026/27? The rates, and one firm's £6,052.05 bill line by line

> An advice firm with £450,000 of investment income pays £6,052.05 in FCA fees and levies for 2026/27, £2,710.29 of it to the FSCS. Each line worked.

- Page to cite: https://aeolookup.com/financial-advisers/fca-fees-fscs-levy-cost-small-financial-advice-firm-2026-27/
- Publisher: AEO Lookup (https://aeolookup.com/)
- Section: Financial advisers and mortgage brokers, Running the firm
- Published 1 October 2026
- Key fact: On 1 October 2026 the FCA's fee calculator, on its 2026/27 Final Rates setting, put the yearly bill for a directly authorised advice firm with £450,000 of investment advice income at £6,052.05, made up of £3,182.59 to the FCA, £91.35 for the ombudsman, £67.82 in guidance levies and £2,710.29 for the FSCS. The FSCS class levy works out at about £5.93 per £1,000 of income and has no threshold.
- Sources: FCA fee calculator, 2026/27 Final Rates; FCA Handbook FEES 4 Annex 2AR, FEES 5 Annex 1R and FEES 7A Annex 1R for 2026/27; FSCS, Chief Executive's statement, May 2026 Outlook, and FSCS levy information page; each read in a browser on 1 October 2026

A directly authorised advice firm with £450,000 a year of investment advice income pays £6,052.05 in FCA fees and levies for 2026/27. That is the total on the FCA's own fee calculator, read on 1 October 2026, and £2,710.29 of it is the Financial Services Compensation Scheme (FSCS) levy.

The FCA fee has a £100,000 threshold before the income rate applies. The FSCS levy has none, so a one-adviser firm pays it from the first pound.

## The rates behind the invoice

| Line | 2026/27 rate | Where it is set |
|---|---|---|
| Minimum fee (A.0) | £2,200 | FEES 4 Annex 2AR |
| Advisers, arrangers, dealers or brokers (A.13) | £2.697 per £1,000, or part, of annual income over £100,000 | FEES 4 Annex 2AR |
| Prudential fee (AP.0) | The A.13 fee multiplied by 0.10094 | FEES 4 Annex 2AR |
| Ombudsman levy, firm not holding client money (block 9) | £0.203 per £1,000 of annual income, minimum £45 | FEES 5 Annex 1R |
| Ombudsman levy, firm holding client money (block 8) | £0.251 per £1,000, minimum £45 | FEES 5 Annex 1R |
| Money guidance levy | Minimum £10, plus £0.0558 per £1,000 of income over £100,000 | FEES 7A Annex 1R |
| Pensions guidance levy | £0.1094 per £1,000 of income over £100,000 | FCA fee calculator |
| FSCS levy, life distribution and investment intermediation class | About £5.93 per £1,000 of eligible income, no threshold | FCA fee calculator |
| FSCS base costs | About 1.4% of the minimum fee, and 1.3% of the A.13 and prudential fees | FCA fee calculator |

The FSCS rate is not in the Handbook. It is set each year from what the scheme expects to pay out, and the calculator is where a firm can see it.

## Three firms through the calculator

We ticked one fee block, A013, on the "2026/27 Final Rates" setting. The calculator added the ombudsman block and the FSCS class itself. We entered the same income in all three boxes.

| | One adviser | Three advisers | Six advisers |
|---|---|---|---|
| Investment advice income | £90,000 | £450,000 | £900,000 |
| FCA fee | £2,200.00 | £3,182.59 | £4,445.93 |
| Ombudsman levy | £45.00 | £91.35 | £182.70 |
| Guidance levies | £10.00 | £67.82 | £142.16 |
| FSCS levy | £563.68 | £2,710.29 | £5,394.00 |
| Total for the year | £2,818.68 | £6,052.05 | £10,164.79 |
| Share of income | 3.1% | 1.3% | 1.1% |

The smallest firm pays the largest share, because the £2,200 minimum does not shrink. For the largest, the FSCS levy is more than the FCA fee.

## The £450,000 firm, line by line

1. Minimum fee: £2,200.
2. Income is £350,000 over the threshold, so 350 × £2.697 = £943.95. The calculator takes off 6% under the label "Deduction for penalties received", £56.63, which leaves £887.31.
3. Prudential fee: £943.95 × 0.10094 = £95.28. It is worked on the figure before the deduction.
4. FCA fee: £2,200 + £887.31 + £95.28 = £3,182.59.
5. Ombudsman levy: 450 × £0.203 = £91.35.
6. Guidance levies: £10 + (350 × £0.0558 = £19.53) + (350 × £0.1094 = £38.29) = £67.82.
7. FSCS class levy: £2,666.78 on £450,000 of eligible income.
8. FSCS base costs: £30.32 + £11.91 + £1.28 = £43.51.
9. FSCS levy: £2,666.78 + £43.51 = £2,710.29.
10. Total: £3,182.59 + £91.35 + £67.82 + £2,710.29 = £6,052.05.

The FSCS line is 45% of this firm's bill.

## Why the FSCS line moves

The FSCS said in its May 2026 Outlook that the annual levy for 2026/27 is projected at £247m, with compensation payments of £267m expected in the year. Advice firms sit in the life distribution and investment intermediation class. The FSCS's levy information page gives that class a yearly limit of £330m, of which product providers contribute £90m.

So the rate a firm sees this year tells it little about next year. Budget on this year's figure and read the FSCS Outlook each May and November.

## What this page does not price

- **Protection and mortgage income.** They fall in other fee blocks with their own rates. Our guide to [FCA fees for a mortgage broker](https://aeolookup.com/financial-advisers/mortgage-broker-fca-fees-2026-27-application-annual-levies/) works three firms through them, and gives the payment date and the late fee.
- **Ombudsman case fees.** These are charged per case, on top of the levy. See [how long a firm has to answer a complaint](https://aeolookup.com/financial-advisers/how-long-to-respond-to-complaint-financial-adviser-mortgage-broker-8-weeks/).
- **Professional indemnity insurance.** No regulator publishes the premium.
- **Software.** Our page on [adviser back-office software prices](https://aeolookup.com/financial-advisers/adviser-back-office-software-prices-published/) covers the systems that publish a price.

## Check your own figure

1. Open the FCA's fee calculator and leave it on "2026/27 Final Rates".
2. Answer "No" to the questions above the fee blocks unless one applies.
3. Tick A013. A firm that holds client money is in ombudsman block I008 and FCA block A021 as well; we did not run that case.
4. Enter your annual income, as FEES 4 Annex 11AR defines it, in the A013 and I009 boxes, and your eligible income in the CLII-1 box.
5. Compare the total with the invoice. The calculator says it is for guidance only and that the invoice is the figure to pay.

The income figures are the firm's own, so the person who signs the regulatory return should check them. The adviser, and compliance where the firm's procedures require it, reviews and signs anything a tool drafts. This page is general information, not legal, regulatory or financial advice.

## Short answers from this page

**How much is the FSCS levy for a small financial advice firm in 2026/27?** On the FCA's fee calculator, read on 1 October 2026, a directly authorised firm with £450,000 of investment advice income pays an FSCS levy of £2,710.29 for 2026/27 out of a total bill of £6,052.05. The class levy is about £5.93 per £1,000 of income and has no threshold, so a firm earning £90,000 pays £563.68.

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General information for UK small firms, not legal, tax or financial advice.