FSCS levy set at £287m as SIPPs turn sour

The levy covers compensation and management expenses, excluding the costs of the major bank failures of 2008/09. It compares with total levies so far in 2014-15 of £276m. The FSCS said it expected a reduction in the overall volumes of new claims in 2015-16, down to 25,590 compared to 28,108 in 2014-15, with the number of claims for PPI and mortgage endowments expected to fall. But the FSCS is preparing for a significant rise in compensation costs arising from advice to transfer pension savings into SIPPs. The scheme said it expects new claims against investment intermediaries to r...