FCA pledges to address 'good guys pay' FSCS funding model

Carmen Reichman
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A further review of the funding model for the Financial Services Compensation Scheme (FSCS) - scheduled to begin later this year - will focus on making the system fairer for IFAs, the Financial Conduct Authority (FCA) told MPs today.

FCA chairman John Griffith-Jones told the Treasury committee at its biannual review of the regulator on 21 October that the review should focus on ways to prevent further unexpected fee hikes for advisers. He said it was "clear" regulatory fees - including those for the FCA, Financial Ombudsman Service, and the Money Advice Service - for advisers "can't keep going up [8%] every year", if the FCA desires to meet its value-for-money objective. But he indicated it was interim FSCS levies that hurt adviser firms the most. In March this year, the scheme announced a £20m interim levy for pe...

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