IFAs must find extra £28m for FSCS levy

Laura Miller
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IFAs will need to find an extra £28m to cover the cost of further levies for the Financial Services Compensation Scheme (FSCS).

The FSCS projects a deficit of £25m for its investment intermediation sub-class, which includes financial advisers. It said this amount would not trigger a cross subsidy on fund managers. Investment intermediaries will also have to pay a "redistribution levy" of £3m - and investment fund managers of £33m - to cover £71m of credit notes which will have to be issued to firms who resubmitted their tariff data for 2010/2011 after overpaying that year's levy. The compensation scheme has already levied the investment intermediation sector £66m this financial year. Total scheme management...

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