PIMFA survey highlights soaring FSCS fees and adviser distrust in scheme

Levies up more than 100% in five years

Tom Ellis
clock • 3 min read

More than four-in-10 PIMFA member firms have seen their Financial Services Compensation Scheme (FSCS) levy rise by more than 100% in the last five years, according to a survey by the advice and investment trade association.

On top of that figure, the majority (82%) the 84 chief executives or business owners of PIMFA (Personal Investment Management & Financial Advice Association) member firms said FSCS costs accounted for at least 20% of all outgoings, excluding payroll and accommodation costs. The trade association also quizzed its member firms on the costs of professional indemnity cover, which reportedly amounted to 56% of FSCS costs on average. Further, a quarter (26%) of firms reported that premiums had also increased by more than 100% in the last five years, and half (56%) said they had restrictions on...

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

Risks and opportunities from the 'death of the annual review'

Risks and opportunities from the 'death of the annual review'

'Annual reviews have historically acted as a safeguard against disengagement'

Graeme Devlin
clock 29 May 2026 • 4 min read
Non-financial misconduct: Rising expectations and rising exposure

Non-financial misconduct: Rising expectations and rising exposure

'Managers need to know what to look for and what to do in the moment, including when to escalate'

Sarah Jackman
clock 27 May 2026 • 5 min read
FCA must still fix investing culture, says LSE CEO

FCA must still fix investing culture, says LSE CEO

‘We’ve protected people from the downside but we haven’t exposed the upside’

Sophia Panayi
clock 20 May 2026 • 1 min read