Following a summer consultation on the funding framework, stakeholders emphasised the importance of transparency and accountability as key elements of ARGA’s future budgeting and funding arrangements, while also stressing that small firms should not have to pay excessive fees.

Although there was broad support for the proposal to align ARGA’s budget, annual funding requirement and levies with the costs allocated to its principal regulatory activities, respondents wanted more detail on the likely impact of the proposals in terms of the levy amounts; and they called for further consultation on the detail of the proposals, the Financial Reporting Council (FRC) said.

They also stressed the importance of a proportionate approach to the levies - in particular, those imposed on smaller entities that fall within the scope of ARGA’s funding arrangements - and said that ARGA should not be able to impose in-year general levies.