FSCS interim levy Q&A

INTERIM LEVY

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The Financial Services Compensation Scheme's announcement of a £60m interim levy for investment intermediaries once again brought the whole system under the microscope.

Here, the FSCS goes through some of the key questions advisers might have about the levies and its impact on the industry. What is the interim levy? The FSCS operates on a 'pay-as-you-go' basis, and raises levies to cover the projected annual costs of the Scheme (both operational costs and the costs of compensation payments). It normally undertakes a levy process once every financial year, although further compulsory levies against the relevant sub-class (up to the threshold limit) can be raised if costs are forecast to exceed those initially anticipated. This interim levy arise...

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