Last week the FCA changed the fee structure for IRAs, reducing it to something much more affordable.
Commenting on the Financial Conduct Authority’s (FCA’s) news on July 1st that Introducer Appointed Representatives (IRAs) will no longer have to pay the proposed flat fee of £250, but instead only £75, Louis Alexander, CEO at Payl8r said:
“The fact the FCA has listened to industry feedback and has revised the payment structure it proposed in April is fantastic news for the sector, especially those small IRAs who may not have been able to meet these costs.
“We recognise the need for the FCA to have a fee structure in place that enables it to monitor both IRAs and Appointed Representatives (ARs), but we felt very strongly that the FCA’s fee structure wasn’t right and didn’t take into the account the time and large costs that regulated and ethical firms like ours already undertake in on-boarding and continually monitoring our IAR network. To duplicate this time and investment would be grossly inefficient. The reduced fee of £75 for IARs is a sensible and proportionate cost.
“As one of the most established businesses in this sector we see it as part of our role to work alongside regulators to continually evolve policies to ensure that customers can be given money affordably and without risk. We look forward to working alongside the FCA in the future to shape and evolve regulation in the buy now pay later sector.”