Firms changing advice scope face FSCS exit fee

Scott Sinclair
clock

The FSA says firms should be charged an exit fee by the compensation scheme (FSCS) if they stop advising on certain products.

In its latest quarterly consultation paper, the regulator proposes giving the FSCS the right to charge a firm if it stops carrying out activities in one of its five ‘activity' classes, but continues to operate in one or more other classes. The exit fee would help the FSCS meet its expenses in the event of future compensation costs in that class. Currently firms can exit an activity class fee free. There are five FSCS classes: deposits, life and pensions, investment, general insurance and home finance. If an intermediary firm stops offering services in one of the classes, the FSA sa...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

AI adoption not a 'must' for advice industry but it can leverage services

AI adoption not a 'must' for advice industry but it can leverage services

‘You are not struggling for clients, so it is a great place to be.’

Isabel Baxter
clock 01 May 2024 • 1 min read
Long-term financial planning proving increasingly difficult

Long-term financial planning proving increasingly difficult

Cash ISAs were the preferred vehicle for those planning over the long-term

Sahar Nazir
clock 01 May 2024 • 1 min read
Financial Conduct Authority's regulation 'lacks coherent vision'

Financial Conduct Authority's regulation 'lacks coherent vision'

‘It does feel like the wind has been in our faces over the past few months’

Isabel Baxter
clock 01 May 2024 • 2 min read