FSCS consults on risk-weighted adviser levy

Carmen Reichman
clock

The Financial Services Compensation Scheme (FSCS) is considering how it can introduce 'risk' as a metric upon which to base the calculation of its levy on firms.

In a blog post on 3 June chief executive Mark Neale said he was concerned low risk firms were picking up the bill for the risky ones that fail under the current system and wanted to find a fairer way of distributing the costs. The FSCS is inviting adviser views on what would be a 'fair' funding arrangement as part of its funding review currently underway. Neale's comments came after an "angry IFA" confronted him on the rising cost of the levy and the fact he had to contribute funding to business segments he was not authorised to advice in, such as pensions. Related reading: Hargr...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

'Risk aversion' from FCA and PRA limiting UK growth and competitiveness

'Risk aversion' from FCA and PRA limiting UK growth and competitiveness

Regulators 'constraining firms', House of Lords report claims

Patrick Brusnahan
clock 13 June 2025 • 2 min read
FCA targeted support communication to 'ramp up' as further guidance issued

FCA targeted support communication to 'ramp up' as further guidance issued

Regulator expected to update the industry this month

Isabel Baxter
clock 09 June 2025 • 5 min read
FCA joins forces with international regulators on illegal finfluencer crackdown

FCA joins forces with international regulators on illegal finfluencer crackdown

Nine regulators from across the globe come together

Isabel Baxter
clock 06 June 2025 • 3 min read