Member

Amendment 68 seeks greater certainty regarding supervisory fees and the impact of reform on firms, especially small firms. The Government recognise the importance of ensuring that the future supervisory framework remains proportionate, particularly for smaller firms. However, detailed fee arrangements will necessarily be developed alongside implementation planning and stakeholder engagement. The future supervisory model will be funded through supervisory fees, as is standard for regulatory practice, but the Government have also committed to substantial start-up and transition funding through the economic crime levy to facilitate implementation and support the development of the new regime, which will be achieved via the funding authority in Clause 48. The Government remain committed to engaging closely with all stakeholders as implementation develops and to ensuring that the future framework is proportionate and sustainable. We therefore do not consider this additional statutory requirement necessary.