The Financial Conduct Authority plans to increase its annual funding requirement for the next financial year amid a furore over its insurance probe gaffe.
The FCA is expected to reveal plans today to hike its annual budget by around 3% to £450 million.
The FCA's 2014-15 budget does not take into account the cost of regulating thousands of consumer credit providers, which will transfer to the auspices of the regulator for the first time this week, Sky News reported.
The news service reported without citing sources that the fees will be frozen for thousands of the smallest firms regulated by the FCA, with the minimum charge remaining at £1,000.
Martin Wheatley, chief executive of the FCA, is facing calls for his resignation after a gaffe that wiped billions of pounds from the value of insurance companies.
The newspaper said the Association of British Insurers (ABI) is expected to write to Chancellor George Osborne to complain about the FCA, which has been accused of creating a false market in insurers' shares.
The FCA was due to announce a review into the life insurance industry in its annual business plan on Monday. But a senior FCA supervisor outlined plans for the review in a press interview on Friday, which resulted in sharp falls in share prices across the sector, including Resolution, Aviva, Legal & General, Standard Life and Prudential.
The FCA later in the day said the review wouldn't look at sales practices nor would it apply current standards to old policies, such as on the level of premature exit charges, after which the insurers' share prices recovered some of their losses.
On Saturday Andrew Tyrie, the head of the Parliament's Treasury Committee, described the issue as an "extraordinary blunder".
Additional reporting by Reuters
