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...

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 chair: Name and shame plans 'valid' despite 'stern reaction'

FCA chair: Name and shame plans 'valid' despite 'stern reaction'

Ashley Alder was speaking at a Treasury Committee hearing

Cristian Angeloni
clock 09 May 2024 • 4 min read
Ban and £120,300 fine for former firm CEO who 'put investors at risk'

Ban and £120,300 fine for former firm CEO who 'put investors at risk'

James Lewis was chief executive at London-based Shard Capital Partners

Hope Coumbe
clock 07 May 2024 • 1 min read
Progress over perfection: Targeted support has huge upsides

Progress over perfection: Targeted support has huge upsides

Targeted support is not perfect but 'may be good enough'

Chris McCullam
clock 07 May 2024 • 4 min read