FSCS funding again under the spotlight after supplementary levy announcement

Advisers to pay extra £8m towards scheme

clock • 3 min read

The Financial Services Compensation Scheme (FSCS) levy has introduced a £92m supplementary levy for the current financial year.

The scheme said the supplementary levy was a result of increased compensation payouts to customers and pension advice claims resulting from more firms failing.  The scheme estimated it would require £92m of additional funding, which will be paid for through a supplementary levy.  The FSCS said that it will source £8m from the Life Distribution and Investment Intermediation class, which includes financial advisers, and £84m from surpluses across other classes. The FSCS will confirm any additional levies in January 2021 and invoices will be issued to advisers shortly afterwards. Sinc...

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

Trade bodies call for chancellor to stop FCA public enforcement

Trade bodies call for chancellor to stop FCA public enforcement

‘Proposals to publicise investigations are a worrying development’

Isabel Baxter
clock 29 April 2024 • 2 min read
SDR extension plans will ensure 'uniform standard' for portfolios

SDR extension plans will ensure 'uniform standard' for portfolios

'Retail-focused firms are also facing a short timeline to prepare'

Cristian Angeloni
clock 24 April 2024 • 4 min read
FCA proposes advisers and platforms 'must' communicate SDR labels

FCA proposes advisers and platforms 'must' communicate SDR labels

Distributors also must provide access to consumer-facing disclosures

Isabel Baxter
clock 23 April 2024 • 1 min read