Keith Richards: 'Current FSCS levy system outdated'

Following FCA letter

Sophie King
clock • 2 min read

The current Financial Services Compensation Scheme (FSCS) levy systems are outdated and must be overhauled, Personal Finance Society (PFS) chief executive Keith Richards has told Professional Adviser.

Yesterday (21 January), in its suitability review, the FCA said the transfer of compensation costs such as personal indemnity (PI) via the FSCS levy places an "unfair" burden on the FSCS and other firms. FCA director of life insurance and financial advice supervision Debbie Gupta said it also "threatens confidence and participation in the financial services market". Richards (pictured) has told PA that "the time has come" to make legislative change. "The current levy systems are outdated, the markets have changed," he said. "Legislation regarding pension freedoms, for example, is caus...

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