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...
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