FAMR backs risk-based FSCS levy to ease adviser burden

FSCS funding unpredictable

Jenna Towler
clock • 2 min read

The Financial Services Compensation Scheme's current levy collection method makes it hard for advisers to plan and faces reform following the release of the Financial Advice Market Review (FAMR).

The report, released this morning, states the cost of the FSCS levy is not necessarily being borne by the right people. It recommended reviewing how the FSCS is funded and said risk-based levies should be explored. The report, released following a joint consultation from HM Treasury and the Financial Conduct Authority (FCA), added the FSCS funding classes should be overhauled. It added contributions from firms could be smoothed making "more extensive use of the credit facility available to the FSCS". It said the funding review had been set for this April. It also wants the Financ...

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

Regulatory pressure continues to 'weigh' on advisers

Regulatory pressure continues to 'weigh' on advisers

Consumer Duty and FCA reporting cited as biggest regulatory demands

Jenna Brown
clock 20 October 2025 • 1 min read
Updated: Failed financial advice firms tracker

Updated: Failed financial advice firms tracker

Firms that the FSCS has confirmed as failed since the start of 2023

Professional Adviser
clock 20 October 2025 • 1 min read
FCA probe firm refused planning permission after promising investors 8% returns from Essex development

FCA probe firm refused planning permission after promising investors 8% returns from Essex development

One of a string of ‘fixed rate return’ investments offered by Moneda Capital

Jen Frost
clock 17 October 2025 • 5 min read