The Financial Services Authority (FSA) has revealed in its annual business plan that it is to cut fees for over 10,000 small firms.

Small companies will have their minimum FSA fees frozen at 2008/09 levels, something that the FSA is able to do because of money raised by fines and by larger firms being charged more.

"This will mean higher fees for regulated firms, although we have been careful to ensure, as far as possible, that firms requiring the most regulatory work and engagement pay proportionately," said Hector Sants, chief executive of the FSA.

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