The Financial Services Authority, the UK markets regulator, has pledged to cut the fees it charges its 11,000 member firms by as much as 1.8% after overestimating the cost of doing its job last year.

In the annual report published on Wednesday, the FSA revealed that its "annual funding requirement" for this financial year is £213.3m (€318m) - less than the £214m it cost the regulator to do its job last year.