FSA consults on raising FSCS adviser class threshold

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The Financial Services Authority (FSA) has set out proposed changes to the funding of the Financial Services Compensation Scheme (FSCS).

The regulator said the changes could reduce the likelihood of interim levies and offer firms more certainty in the level of fees they pay. However, the threshold for investment intermediaries will be raised to £150m, up from the current £100m, if the proposals are agreed. The threshold refers to the total amount that can be levied on an individual class - in this case investment intermediaries - before the costs are spread among the remaining classes in what is known as cross-subsidy. The fund manager threshold would be reduced to £200m from £270m. The deposit class threshold could...

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