The Financial Services Compensation Scheme (FSCS) is considering how it can introduce 'risk' as a metric upon which to base the calculation of its levy on firms.
In a blog post on 3 June chief executive Mark Neale said he was concerned low risk firms were picking up the bill for the risky ones that fail under the current system and wanted to find a fairer way of distributing the costs. The FSCS is inviting adviser views on what would be a 'fair' funding arrangement as part of its funding review currently underway. Neale's comments came after an "angry IFA" confronted him on the rising cost of the levy and the fact he had to contribute funding to business segments he was not authorised to advice in, such as pensions. Related reading: Hargr...
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