FSCS to charge IFAs £9m to cover endowment claims shortfall

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The Financial Services Compensation Scheme is expected to send IFAs a bill for £9m next year just for endowment compensation claims, in its overall regulatory levy, IFAonline can reveal.

The levy will be aimed at IFAs in the A12 and A13 contribution bands but, says the FSCS, the majority of those IFAs footing the £9m expected shortfall will be the smaller IFAs in the A13 contribution band. The Association of Independent Financial Advisers has been working behind the scenes in recent weeks in order to negotiate a settlement which will enable IFAs to pay the additional bill. This additional charge will now be added to next year’s levy, and IFAs will be able to pay in instalments, if they choose to do so, as part of the overall combined invoice they will received from th...

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