Levy volatility 'unavoidable' in pay-as-you-go funding - FSCS's Neale

Neale (pictured) was defending the jump in the final Financial Services Compensation Scheme (FSCS) 2018/19 levy, which on Tuesday was confirmed to have risen from its £336m January forecast to £407m. The lifeboat fund attributed this to the growing number of claims relating to defined benefit (DB) pension transfers. "The advantage is that the FSCS does not take money from the industry ahead of need by building up a fund," he argued. "We only levy for the compensation costs about which we can be reasonably certain. The downside is that uncertainty is the only certainty." Neale highligh...