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

FCA's CP26/10 lets firms gather less - it doesn't let them assume more

FCA's CP26/10 lets firms gather less - it doesn't let them assume more

'A family knowing a client's wishes is not the same as the client stating them'

Mark Buck
clock 15 September 2026 • 5 min read
What the FCA's Mills review means for financial services

What the FCA's Mills review means for financial services

Regulatory expectations will need to evolve as AI becomes more autonomous

Jessica Caws and Cheryl Tham
clock 07 September 2026 • 6 min read
AI and compliance: Charging for advice or administration?

AI and compliance: Charging for advice or administration?

Efficiency doesn't remove accountability

Gareth Fatchett
clock 03 September 2026 • 3 min read