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...
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