APFA: FSCS funding model better for advisers in long term

Carmen Reichman
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The Association of Professional Financial Advisers (APFA) has said it hopes a new approach to funding the Financial Services Compensation Scheme (FSCS) will mean lower overall contributions from advisers in the long term.

Director general Chris Hannant (pictured) said the new method would remove the need for further interim levies and mean part of future annual levies had been paid in advance. Combined, this will smooth payments out, he suggested. Introducing the new 36-month funding approach, the FSCS this week hit investment advisers with a £105m levy for 2014-2015, some £29m above what it would have been if calculated under the old one-year approach. But Hannant said: "We hope that the long-term situation for advisers might not be as bad as this headline number suggests. "Under this new approa...

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