Regulator to cut fees for smaller firms

Date: 13th February 2009

The Financial Services Authority (FSA) has announced it is to reduce its fees for smaller organisations.

In the regulator's latest Business Plan, it outlines that as many as 10,000 companies could see a cut in the rates they are charged.

Presently, smaller businesses pay about £745 annually, but this could drop to just over £700.

Chief executive of the FSA, Hector Sants, said: "We will be focused on ensuring firms are soundly run in these difficult times and consumers are protected.

"There will be no increase in fees for the smallest firms, and many of them will actually experience a fee reduction."

He added that while smaller companies - such as sole traders and partnerships - would potentially pay less, regulated firms would pay more.

A recent investigation by the Forum of Private Business found that a quarter of British firms had seen a decline in trading since the onset of the credit crunch.