FSCS outlines 2005/6 compensation, levy costs

These increases are linked to expectations of rising claims from areas such as split capital investment trusts, and precipice bonds, which will offset falling claims related to the Pensions Review. Volatility in the number of claims is most likely to come from the areas of investments and general insurance intermediaries. Published in full for the first time, the Plan and Budget for 2005/6 says the scheme estimates it will pay out £255m through the year compared with an estimate for the current year of £223.6m. The levy will drop to £202.9m from £218.2m in the 2004/5 year. Contr...