Final 2020/21 FSCS levy rises £16m for advisers

£14m rise overall

Hannah Godfrey
clock • 2 min read

The final Financial Services Compensation Scheme (FSCS) levy for 2020/21 has risen by £16m for advisers to £229m.

In a market update issued on Thursday morning (21 May), the lifeboat fund announced it would levy firms £649m in 2020/21, £14m more than was forecast in its plan and budget that was published mid-January.  It said the main reason for the change was the inclusion of an estimated £44m to cover compensation costs for London Capital & Finance investors (LCF), which was also cited as a reason why the life distribution and investment intermediation funding class, which contains advisers, had increased.  Where the levy increased by £16m for advisers, it decreased for other classes such as de...

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