Advisers could pay more under FSCS proposals, warns APFA

The FSCS is proposing to change the way it calculates fees to a system based on a three-year average cost of compensation, not including 'exceptional' circumstances, to lower the chances of raising interim levies. However, in its calculations to show how this might have worked in the past three years, the FSCS did not consider the collapse of Keydata to be an exceptional event, even though it triggered the scheme's cross-subsidy model for the first time in its history. Though APFA applauded the FSCS's efforts to provide more stability and foresight of potential costs, it said it was c...