The Financial Services Compensation Scheme (FSCS) will levy firms £363m this year, £15m less than it forecasted in its budget in January, however investment advisers will pay £4m more, the service has said.
The cuts came after the service downgraded its forecasted compensation costs from pension-related products such as self-invested personal pensions (SIPP), which were reduced from an initial forecast of £163m to £146m. General insurance costs were also down. SIPPs account for about 93% of the costs in this class and saw their forecasted average claim value reduced from £36,000 to £32,000. A supplementary levy on the sector also helped reduce costs for the last year by about £9m. Despite this, the levy on life and pensions advisers will remain as forecasted at £100m to account for the...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes