Ever-increasing levies: What's on your FSCS wish list?

Compensation system needs to change

clock • 5 min read

Gareth James looks at spiralling FSCS levy demands, the regulator's funding review and asks how the compensation system can be changed for the better

The cost of the Financial Services Compensation Scheme (FSCS) levy to life and pensions advisers rose by £85m in 2015/16. Had this been from a starting point of several hundred million pounds the increase would have been significant. When you consider that the starting point for this increase was a 2014/15 levy of £34.5m, the increase is staggering. In the context of an increasing and unpredictable levy, it is not surprising that the Financial Conduct Authority (FCA) is reviewing how the FSCS is funded. The possibility of risk-based levies, amended funding classes and better use of cr...

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

FCA acknowledges investment trust platform clash and proposes changes in call for wider CCI input

FCA acknowledges investment trust platform clash and proposes changes in call for wider CCI input

Final rules outlined in 2025

Eve Maddock-Jones
clock 19 December 2024 • 6 min read
WealthTek boss John Dance charged with £64m fraud and money laundering

WealthTek boss John Dance charged with £64m fraud and money laundering

‘One of the most serious and largest frauds’ ever investigated by FCA

Jenna Brown
clock 19 December 2024 • 2 min read
Number of financial firms failed by FSCS increases in October and November

Number of financial firms failed by FSCS increases in October and November

Including Charterhouse and Advice & Wealth Management Solutions

Isabel Baxter
clock 18 December 2024 • 2 min read