Investment advisers' annual fee to the Financial Services Compensation Scheme (FSCS) will jump to an estimated £96m in the coming financial year, compared with just £8m last year.
The FSCS today says firms in its D2 sub-class for investment intermediation businesses will pay a projected £58m in 2009/10, consisting of an initial £30m and an estimated £28m "possible later in 2009".
It says the increase relates to revised assumptions about claims against investment brokers, including Pacific Continental Securities (PCS) and Square Mile Securities (SMS), in 2009/10.
However, the FSCS also announced today an interim levy of £38m for D2 firms relating to claims made in 2008/9 against PCS and SMS.
The interim levy will be collected in early summer, the FSCS says, taking investment intermediaries' FSCS fee total to an estimated £96m for the coming financial year.
"We have now received almost 3,500 claims against the firms and have refined our earlier assumptions about the costs of claims against the firms both for 2008/09 and 2009/10," FSCS chief executive Loretta Minghella says.
"Whilst most sub-classes will see no change from the indicative levies we published in our plan and budget, we recognise the levy comes at a very difficult time for firms. They can rest assured that we have taken steps to avoid over-levying and to contain our costs."
Including an expected extra £28m for the D2 sub-class later in the financial year, the total FSCS levy amount will climb more than £52m in 2009/10, from £131.7m in the last financial year to £184m in the coming year.
However, four sub-classes will see decreases from the 2008/9 levy amount, including a £13m drop in the C2 life and pensions intermediation sector.
Deposit-taking firms are expected to pay just under £406m to cover the estimated expenses to 31 March 2009 arising from the bank defaults of 2008.
It is lower than the figure of £435m published in the FSCS Plan and Budget and reflects interest rate reductions.
The final 2008/09 amounts are expected to be announced and levied in the early summer, to enable the FSCS to pay loan interest to the Treasury by 1 October 2009.IFAonline
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