FSCS demands extra £24m levy due to rising SIPP claims

SIPP-related claims continue to grow

Jenna Towler
clock • 2 min read

The Financial Services Compensation Scheme (FSCS) has issued an additional £24m levy demand due to rising numbers of self-invested personal pensions (SIPP) claims.

In an update released this morning, the body said "the supplementary levy arises from continuing growth in volume of SIPP-related claims falling on life and pension advisers". In April, it forecast these would total £146m but because of uncertainly it only raised a levy of £100m (the maximum for the sector). However, latest calculations based on current volumes and average costs, showed the body needed to raise an additional £24m in 2017/18. It said the cost would trigger a cross-subsidy and "fall on the retail pool". Both advisers and providers across different funding classes wil...

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

Moving beyond FG12/16: The evolution of investment propositions

Moving beyond FG12/16: The evolution of investment propositions

'The modern adviser requires a holistic approach'

Karl Dines
clock 21 November 2024 • 4 min read
FCA's Nikhil Rathi registers interest for top civil service job - reports

FCA's Nikhil Rathi registers interest for top civil service job - reports

FCA CEO term to end next year

Linus Uhlig
clock 19 November 2024 • 1 min read
A practical guide to getting ongoing reviews in order

A practical guide to getting ongoing reviews in order

Have you considered file checks on annual review cases?

Jennifer Peaty
clock 19 November 2024 • 6 min read