Advisers' contributions to the Financial Services Compensation Scheme (FCSC) may rise if a Financial Conduct Authority (FCA) proposal to widen the number of eligible claimants in the event of an investment failure is approved.
The regulator is consulting on proposals to extend eligibility for FSCS compensation to all unincorporated associations and certain large partnerships if an investment firm fails. The FCA estimates that some 5,000 associations and up to 24,000 partnerships would benefit from the new rules, should they be agreed. However, a spokesperson for the FCA said he did not believe the material impact on advisers would be great. "There is a possibility certainly that [advisers'] levies could increase but, if so, we don't think it would be by a significant amount. We do not think that, as a re...
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