Advisers' guidance guarantee bill could hit £4.2m in 2015-2016

A Treasury update on the funding of the guarantee, now known as Pension wise, states the government will pay the set-up costs in 2014-2015. A levy across the financial services industry will then fund its ongoing operation. The initial cost estimate for 2015-2016 is £35m and will be confirmed by the Financial Conduct Authority (FCA) in March. A FCA consultation paper, released in November last year, said advisers were likely to have to foot 12% of the overall bill, working out to £4.2m for the 2015-2016 financial year. The FCA last year reduced the guidance guarantee burden on advi...