Advisers in renewed push for product levy despite FCA rule out

Follows FSCS levy confirmation

Hannah Godfrey
clock • 3 min read

Multiple advisers continue to believe a product levy is the fairest way to calculate the FSCS levy, despite the FCA effectively ruling out the option back in December.

Responding to the Financial Services Compensation Scheme's (FSCS) confirmation of this year's levy published on Wednesday, advisers argued the problem of "ridiculously high" levies could only be solved by basing fees on the products sold. The FSCS will levy firms £363m this year, representing a £15m reduction on its January forecast, but amounting to £26m more than it levied for 2016/17. Pension advisers will contribute £100m to the levy, while investment advisers will pay £88m. Although the Financial Conduct Authority (FCA) effectively ruled out the introduction of a product-based le...

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

How considering vegetable peelers can inform your product design

How considering vegetable peelers can inform your product design

FCA released two reports to mark the third birthday of Consumer Duty

Alison Gay
clock 31 July 2026 • 4 min read
Andy Wealthall: Is there still a place for annual suitability reviews?

Andy Wealthall: Is there still a place for annual suitability reviews?

'We shouldn't solve one problem by creating another'

Andy Wealthall
clock 30 July 2026 • 4 min read
Why the smartest advisory firms are getting ahead of the FCA on non-financial misconduct

Why the smartest advisory firms are getting ahead of the FCA on non-financial misconduct

'September is a starting point, not the finish line'

Gemma McCall
clock 29 July 2026 • 5 min read