Advisers hit with interest jump on loans to meet FSA levy

Advisers opting to pay fees in instalments through the FSA-approved loan giant Premium Credit received 8.7% APR in 2006/7 but could pay 9.2% this year. Over the same period, the Bank of England has cut the UK base rate from 5.25% to just 0.5%. The regulator entered into a three-year arrangement with Premium in 2006, pledging an annual review of rates and recommending the company to UK IFAs. The rate rise comes as the amount advisers may have to borrow could increase for the next financial year. Earlier this week, the FSA announced an increase of £88m in investment advisers' levy to ...