Aifa hails FSCS funding proposals

The regulator has proposed a radical revamp of the current process, scrapping the ‘pay as you go’ system and making advisers pay a levy based on the income they earn from specific types of business. Under the proposals, the FSA suggests the capacity of the FSCS needs to widen to build a fund of up to £4.4bn a year so increased levies will be required, albeit the FSA then intends to limit the annual levy. Tracey Mullins, director of communications at Aifa, says advisers would be delighted as they could now pay substantially less. “We’re delighted with the proposals,” she says. “This is t...