The FSCS plans to hit IFAs with a proposed levy of £70m before the end of March.
The 2009/10 ‘investment intermediation' levy will be brought in before the 31st of next month to cover significant additional costs arising from new defaults, including Keydata Investment Services, the FSCS says.
Default costs arising from the failure of Pacific Continental Securities and Square Mile Securities have so far amounted to £27m, the FSCS says. Keydata Investment Services and other investment claims expected in the year are forecast to cost £43m.
Loretta Minghella, chief executive of the FSCS, says: "We are experiencing a steep rise in investment claims this year that will continue into 2010/11.
"Dealing with claims relating to major defaults such as Pacific Continental Securities, Keydata Investment Services and in relation to structured products is having major implications for our work and therefore the levy in both 2009/10 and into 2010/11."
Sharply increasing claims costs in some areas are set to be one of the dominant themes of 2010/11, she adds.
"The costs of compensation in the areas of investments and payment protection insurance are rising as a result of major failures."
The total FSCS indicative levy for 2010/11 is put at £128.5m, including compensation costs and management expenses, but excluding the interest costs to loans to fund the bank failures.
Total funds on list rise from 26 to 58
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