The advisory community will pay a smaller proportion of the overall Financial Ombudsman Service (FOS) Levy in 2011/12, although the explosion in PPI cases could cancel out any savings.
In 2010/11, advisers have paid £35 per person, contributing 5.2% to the overall £17.7m FOS levy. In recognition of the decrease in the number of complaints brought against advisory firms, this proportion has now been reduced to 2.1% for 2011/12 in the FSA's latest proposals. Working on the basis of the same general levy as 2010/2011, this would work out at £9.40 per approved person, with a minimum of £35 per firm. However, the FSA highlights the need for more reserves in order to meet the increasing number of PPI cases being brought to the ombudsman, which could lead to an increase...
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