APFA: Disproportionate guidance guarantee levy must be changed

Responding to the Financial Conduct Authority consultation, the trade body said the proposed levy must be changed to make it fairer on advisers. The Pensions Advisory Service estimates that the annual cost of providing the guidance guarantee would be between £15m to £20m. Under the FCA's proposals, an annual levy of £20m would cost advisers between £4m and £6m. APFA said retained profits in financial adviser firms in 2013 totalled £128m - therefore a levy of this size would represent between 3% to 5% of advisers' retained profits. APFA director general Chris Hannant said: "The FCA'...