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...

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