FSCS: Forecasted levy cut by £15m but advisers are missing out

Pension adviser levy stays same, investment up £4m

Carmen Reichman
clock • 1 min read

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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Law, not likes: Cracking down on social media financial promotions

Law, not likes: Cracking down on social media financial promotions

‘Every individual social post or communication must comply with the rules’

Sarah Wylie and Owen McLennan
clock 28 October 2024 • 4 min read
How Labour can support investment management vibrancy

How Labour can support investment management vibrancy

The formation of a new government – now just over 100 days’ old – has brightened the spotlight on UK financial services regulation, writes IIMI CEO Dani Hristova

Dani Hristova
clock 28 October 2024 • 4 min read
Number of non-financial misconduct reports in the City spikes in three years

Number of non-financial misconduct reports in the City spikes in three years

FCA reveals survey results

Cristian Angeloni
clock 25 October 2024 • 4 min read