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
Signup and gain exclusive members-only insights
- 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
