FSCS cuts interim adviser levy to £20m; will not rule out pre-funding

Laura Miller
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The Financial Services Compensation Scheme (FSCS) has cut its interim levy for investment intermediaries for 2012/13 from £25m to £20m, and has said it will not rule out pre-funding as a means of raising cash for the scheme.

For insurance intermediaries their interim levy will fall from £20m to £16m. However the reductions in the interim levy for investment intermediaries comes amid an annual levy for the group for 2013/14 of £76m. The FSCS said the need to raise interim levies at all reflects higher compensation costs for FSCS than it expected when it set its levies for 2012/13 back in the spring of last year. That means the levies it raised then will not be sufficient to meet the compensation it now expects to pay before the 2013/14 levy becomes available from July. On the investment side, the FSC...

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