Chris Davies: Using RegTech to tame relentless rising levies

A more nuanced approach

clock • 4 min read

Chris Davies explores the clear and present danger of regulators' blanket approach to levy calculations. Here he discusses how RegTech could cut bills for the good guys...

It's not going away any time soon is it? With IFAs reporting a 76% hike in professional indemnity insurance (PII) premiums the hardened regulatory levies are really biting and squeezing firm margins at a time of economic uncertainty given the on-going pandemic.  At Model Office-MO we continue to press that regulatory levy stakeholders such as the Financial Services Compensation Scheme (FSCS) Financial Ombudsman (FOS) and PII insurers need to take firm's soft data i.e. their competence, conduct and culture into account when assessing firm's risk and potential consumer harm. Unfortunate...

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