Rising DB transfer claims push 2018/19 FSCS levy to £407m

£71m up on January forecast

Julian Marr
clock • 2 min read

The FSCS has cited the growing number of claims relating to defined benefit (DB) pension transfers as the main reason for the lifeboat scheme's levy for this year being a fifth higher than it forecast in January.

Confirming the final total this morning, the Financial Services Compensation Scheme (FSCS) said it would levy firms £407m for 2018/19 - £71m more than it forecast in its Plan and Budget at the start of the year. This includes management expenses of £72.7m and compares with a total levy of £363m in 2017/18. The lion's share of the increase - £52m - relates to the life and pension intermediaries funding class, with the FSCS pointing to the rise in DB pension transfer claims and noting £10m had been set aside to pay for claims against "a number of independent financial advisers". One of the...

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 Your profession

Aveni forms AI advisory board with wealth management leaders

Aveni forms AI advisory board with wealth management leaders

Senior execs from Aviva’s Succession Wealth, Schroders Personal Wealth, 7IM and Rathbones join forum

Sahar Nazir
clock 01 July 2025 • 2 min read
Majority of UK wealth management sector eyes acquisitions this year

Majority of UK wealth management sector eyes acquisitions this year

Continued appetite and momentum in M&A space

Isabel Baxter
clock 30 June 2025 • 3 min read
How can firms improve client engagement with wealth products?

How can firms improve client engagement with wealth products?

Consumer first focus; Simplifying prodcut information

James Wood
clock 30 June 2025 • 4 min read