FCA fines should contribute to cost of FSCS levy - PIMFA

Until long-term solution is agreed

Sophie King
clock • 2 min read

Trade association PIMFA has urged for immediate action to be taken to reduce the cost of the Financial Services Compensation Scheme (FSCS) for advice firms until a long-term solution to the levy is agreed.

PIMFA said the ever-increasing levy is the "clearest indicator of consumer detriment" and work is needed to improve the regulation and supervision of this sector. However, as the Financial Conduct Authority (FCA) has alluded to, this could take years to have an impact. For the short term, PIMFA has proposed that FCA fines imposed on firms for regulatory failures, other than the small proportion given to charity, contribute to funding the FSCS. This, the body said, would either limit FSCS levy increases to a more manageable level, or potentially reverse FSCS levy increase altogether. I...

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 Your profession

Advisers urged to remain 'alert' as LPA financial misconduct complaints rise

Advisers urged to remain 'alert' as LPA financial misconduct complaints rise

Alleged LPA financial misconduct complaints rose to almost 12,000

Sophia Panayi
clock 12 October 2026 • 3 min read
News editor's view: Taxing questions for advisers

News editor's view: Taxing questions for advisers

The news editor's Friday Night Takeaway from 9 October

Isabel Baxter
clock 09 October 2026 • 2 min read
Why the new chancellor must rebalance growth and consumer protection

Why the new chancellor must rebalance growth and consumer protection

'Healy should re-empower the FCA to unleash the full potential of Consumer Duty'

James Daley
clock 09 October 2026 • 3 min read