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...

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