Adviser FSCS bills set to fall as FCA works to stabilise levy

FCA’s consumer strategy paper

Jenna Brown
clock • 3 min read

The Financial Conduct Authority (FCA) has set out plans to stabilise the £833m Financial Services Compensation Scheme (FSCS) levy as part of its Consumer Investment Strategy paper.

The regulator said it would also target a 10% year-on-year reduction in the life and distribution and investment intermediation funding classes from 2025 and 2030. To achieve this the FCA said it would strengthen the appointed representative (AR) regime, on which it will consult later this year, in a bid to raise the quality of financial advice. It added it would review the compensation framework to ensure that it remains "proportionate and appropriate", particularly where firms fail leaving behind compensation liabilities for the FSCS to address. This will reduce the cost and impact ...

To continue reading this article...

Join Professional Adviser

  • 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 cancels advice firm's permissions over £11,000 unpaid fees

FCA cancels advice firm's permissions over £11,000 unpaid fees

Failed to do business in a 'sound and prudent' manner

Jenna Brown
clock 21 September 2023 • 1 min read
The Financial Conduct Authority’s SDR regime was introduced in October 2022 and the UK regulator stressed that it was a labelling regime, and not a disclosure regime as its European counterpart was.

EU review of SFDR welcomed despite potential future 'frustration'

Industry-wide review of SFDR undertaken

Eve Maddock-Jones
clock 18 September 2023 • 3 min read
London Capital & Finance creditors could get back just 10%

London Capital & Finance creditors could get back just 10%

Update from administrator Evelyn Partners paints worrying picture

Hope William-Smith
clock 12 September 2023 • 1 min read