Advisers back FSCS levy cut plan as PIMFA urges FCA to go further

Levy is 'bone of contention' for advisers

clock • 3 min read

Advisers have backed moves by the Financial Conduct Authority (FCA) to reduce their Financial Services Compensation Scheme (FSCS) bills but trade association PIMFA has said its plans do not go far enough.

The Financial Conduct Authority (FCA) outlined its plans to stabilise the lifeboat fund's levy demands and reduce the burden on advisers by 10% year-on-year from 2025 to 2030 in its paper on consumer investment harm today (15 September).  According to the FSCS, estimated compensation levy costs for the 2021/2022 financial year will be £833m, which is up 19% compared to 2020/2021. The FCA's latest Consumer Investments Strategy and Feedback statement outlined that the consumer investment market was responsible for driving most of these liabilities. Rowley Turton director and Chartered f...

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

The FCA offices in London

FCA sets out plans to streamline legal work in single department

Headed up by general counsel Stephen Braviner-Roman

Jenna Brown
clock 23 March 2023 • 1 min read
FCA restricts advice business after engagement failures

FCA restricts advice business after engagement failures

Independently East bank accounts frozen and permissions cancelled

Charlotte Moore
clock 23 March 2023 • 2 min read
TPO orders AJ Bell to compensate client after £10k transfer error

TPO orders AJ Bell to compensate client after £10k transfer error

Client had requested a full cash transfer from Nucleus to AJ Bell

Charlotte Moore
clock 22 March 2023 • 2 min read