Advisers in renewed push for product levy despite FCA rule out

Follows FSCS levy confirmation

Hannah Godfrey
clock • 3 min read

Multiple advisers continue to believe a product levy is the fairest way to calculate the FSCS levy, despite the FCA effectively ruling out the option back in December.

Responding to the Financial Services Compensation Scheme's (FSCS) confirmation of this year's levy published on Wednesday, advisers argued the problem of "ridiculously high" levies could only be solved by basing fees on the products sold. The FSCS will levy firms £363m this year, representing a £15m reduction on its January forecast, but amounting to £26m more than it levied for 2016/17. Pension advisers will contribute £100m to the levy, while investment advisers will pay £88m. Although the Financial Conduct Authority (FCA) effectively ruled out the introduction of a product-based le...

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