Overall the AFR for 2012/13 is set to be £578.4m, a gross increase of 15.6% from the previous year’s AFR of £500.4m.
The regulator said that the increase in fees would be borne mainly by larger firms, reflecting the resources required for intensive supervision of high impact firms.
Mortgage lenders and general and life insurance providers, collectively, will see their fees increase by as much as 37.3%.
Medium-sized firms will see a proportionate increase reflecting the type of business they conduct.
The FSA said a significant part of the increase in this year’s AFR reflected the costs of implementing the government’s reform of the UK regulatory framework.
The current £32.5m costs for the restructuring are within the overall estimates set by HM Treasury last year, which equates to 28% of the increase in the AFR.
The AFR will also cover the costs of modernising the IT infrastructure to ensure it is a suitable platform before the transition to the Financial Conduct Authority in 2013.
This will require a £22.5m increase in the AFR which equates to 29% of the increase.
This will be the final AFR before the FSA is split into the Prudential Regulatory Authority and the Financial Conduct Authority.
Ahead of the split, the FSA will reorganise internally and move to a twin peaks model that will begin to reflect the shape of the new authorities.
The enforcement fines the FSA imposes during the previous year are returned to the industry by way of discounts to their fees in the following year. This year anticipated financial penalties are estimated to be £58.7m.
Hector Sants, chief executive of the FSA, said: “The year to April 2013 is expected to be a challenging one for the FSA.
“We will be moving to a twin peaks model internally ahead of the split into the PRA and FCA, whilst at the same time continuing to focus on our supervisory role in a very difficult economic environment.
“We are mindful of any increase in costs to industry and have continued to maintain headcount and keep core operating costs in line with inflation. Nevertheless the AFR is still rising as we implement the government’s regulatory reform programme and invest in the necessary long term IT infrastructure.”
