FCA confirms providers will stump up 25% of adviser FSCS bill

'Vast majority' of providers 'strongly disagreed'

Tom Ellis
clock • 2 min read

Providers will be required to contribute 25% of financial advisers' Financial Services Compensation Scheme (FSCS) bills despite their protestations, the Financial Conduct Authority (FCA) has confirmed.

The FCA said respondents were generally supportive of the proposals it laid out last October, although it acknowledged the "vast majority" of product providers and their representative bodies "strongly disagreed" with its proposals to have providers foot 25% of the intermediary bill alongside financial advisers.  On the other hand, the FCA said, a large number of advisers had argued for providers to take on greater responsibility and cost by contributing 75% of their bill, rather than 25%. Rising DB transfer claims push 2018/19 FSCS levy to £407m Despite protestations from both sid...

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