FSCS ups final levy for 2019/20 by £16m to £532m

Advisers to pay £153m

Julian Marr
clock • 3 min read

The FSCS is to levy firms £532m this year - £16m more than it forecast in its 2019/20 Plan and Budget in January - although the levy required for life, pensions and investment advice has reduced by £29m to £211m.

Announcing its final levy for 2019/20, the Financial Services Compensation Scheme (FSCS) said the main reasons for the increase between the figure forecast in January and the final one were an uplift in the number of claims expected against SIPP operators and an upwards revision to "the expected continuing costs in some historic insurances failures". In a statement, the lifeboat fund added: "As in 2018/19, the main driver of the compensation costs falling on the FSCS this year will continue to be pension claims. The bulk of these claims will continue to arise from bad advice to transfer ...

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 Regulation

Five vulnerability questions advisers must ask themselves

Five vulnerability questions advisers must ask themselves

'Identification. Action. Reporting – don't delay'

Jonathan Barrett
clock 12 February 2025 • 5 min read
FCA 'agnostic' on advice industry consolidation benefits

FCA 'agnostic' on advice industry consolidation benefits

Regulator unsure on consolidation outcome but will continue engagement with firms

Sahar Nazir
clock 06 February 2025 • 1 min read
What to expect from the FCA on financial crime in 2025

What to expect from the FCA on financial crime in 2025

Financial crime remains at the forefront of the FCA's agenda

Daren Allen
clock 04 February 2025 • 5 min read