Financial advisers may receive a reduced FSCS levy next year after the Court of Appeal ruled the compensation scheme is entitled to some of the £150m assets of failed Icelandic bank Kaupthing Singer & Friedlander (KSF).
No funds have as yet passed to the FSCS, but it says any financial recovery it makes will "as soon as possible" be passed onto the industry through a reduction in its annual levy. However FSCS spokesperson Suzette Browne says it is "too early to say" when levy payers will see the benefit in their annual statements. "Any recovery we make reduces the levy so the levy payer pays less. We don't have the money yet but it will be passed on as soon as possible." She adds the deposit taking sub-class will be the first to benefit from a levy cut, as they shouldered most of the increase when...
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