AIFA welcomes the FSA's decision to press ahead with its reform of the Financial Services Compensation Scheme (FSCS), a statement says.
The FSA agreed the move at its last board meeting.
The FSA says it could see a significant reduction in the fees that IFAs pay as future costs are spread more evenly across the financial services industry.
The reform follows an AIFA-led lobbying campaign.
Chris Cummings, director general of AIFA, says: “The compensation scheme is a vital regulatory safety net which helps maintain consumer confidence in the financial services industry. But it is in need of urgent reform if it is to continue to deliver its objectives.
“We will soon have a fairer and more robust compensation scheme, which will benefit consumers and the industry.”
During its campaign for reform AIFA said its members, mostly from fee block A13, paid an unfair share of the FSCS levies.
The bill for fee block A13 has risen from £4.5m to £42m in five years.
Cummings says IFAs could see the FSCS bill of £1,200 a head fall by around 50%.
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