Editorial: Boxed in by the climbing FSCS levy

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IFAs are a little hot under the collar this week as invoices from the FSA relating to their levies for the next year reveal annual payments covering the Financial Services Compensation Scheme will increase by up to 375%.

According to figures from the FSCS, IFAs in the A12 and A13 block pay around 57.47% of the compensation fund levy, the majoroty of which - around 90 - is paid by advisers in the A13 category. This, unsurprisingly, has not gone down well with smaller IFA firms, in particular, who face increasing costs for PI cover, as well as slightly higher FSA and FOS fees. The issue is not the general paying of levies – although there will always be individuals who do not see why they should pay - but why successful and financially sound IFA businesses are required to pay compensation costs of those...

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