The regulator has proposed the Financial Services Compensation Scheme (FSCS) should run a shortened compensation levy year in 2018/2019 to prevent advisers overpaying for the lifeboat fund.
The changes are being made because the FSCS' compensation levy year currently runs from 1 July to 30 June, but the separate management expenses levy, which firms pay at the same time, is calculated in line with the financial year - from 1 April to 31 March. The Financial Conduct Authority (FCA) said it has decided to align both with the financial year because the current situation makes it more complicated for the lifeboat fund to forecast levies and makes it difficult for firms to budget. To align the two levies it has proposed a transitional period. The FCA said it plans to: Al...
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