SIPP provider James Hay has entered into a war of words with Rowanmoor over the FSCS levy and whether it should be passed to clients.
James Hay Partnership announced today it will not pass on its £940,000 FSCS levy to clients, after last month writing to customers saying it may have to share the charge.
At the time of James Hay's original announcement, Rowanmoor announced it would not pass on the FSCS levy to clients. However, James Hay says this pledge was a lot easier for Rowanmoor to make due to the lower level of its bill.
Managing director of James Hay Tim Sargisson says Rowanmoor is likely to have had a much smaller levy and would have found it easier to absorb the costs.
"On the basis that James Hay sold its SSAS book to Rowanmoor, its SSAS book is significantly larger than its SIPP business," says Sargisson.
"The levy is based on a company's SIPP book, so one can speculate a business like Rowanmoor could cover the levy on their SIPPs using their SSAS business."
He adds: "We are pleased to hear as part of its plans for regulatory reform, the government is considering how the compensation scheme will fit around the new Consumer Protection and Markets Authority and Prudential Regulation Authority," says Sargisson.
"It is our hope reform will ensure that our industry is not faced with future interim levies on this scale."
Joined as head of strategy, multi asset, in June
Group income protection
Nine in 10 do not have income protection
Set to become part of Single Financial Guidance Body