FSCS running costs predicted to hit £95.5m next year

Complex advice claims drive higher costs

Jenna Brown
clock • 2 min read
Caroline Rainbird: "A key driver behind the expenses we are anticipating for 2022/23 is an ongoing trend in more complex claims with higher processing costs. Of particular note is an increasing number of claims coming through from customers who were given poor advice to move their pensions into unsuitable investments."
Image:

Caroline Rainbird: "A key driver behind the expenses we are anticipating for 2022/23 is an ongoing trend in more complex claims with higher processing costs. Of particular note is an increasing number of claims coming through from customers who were given poor advice to move their pensions into unsuitable investments."

Complex claims to the Financial Services Compensation Scheme (FSCS) linked to poor advice have been blamed for a predicted rise in its running costs for 2022/23 as its annual management expenses budget is forecast to reach £95.5m.

The compensation body said in a budget update, release today (12 January), its running costs for 2021/22 would be £85.3m. It said to meet its running costs and ensure "it can help its customers ...

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

Chris Davies: Consumer Duty unpicked - what advisers need to do next

Chris Davies: Consumer Duty unpicked - what advisers need to do next

'All-encompassing regulatory directive'

Chris Davies
clock 11 August 2022 • 7 min read
Janine Hofer-Wittwer CFA, SIX

Janine Hofer-Wittwer: MiFID II meets ESG and EU regulation

Tight time frame

Janine Hofer-Wittwer
clock 09 August 2022 • 3 min read
Nicola Parish: “Our new scams combat plan sets out to make savers aware of the risk of scams"

Cost of living exposing savers to more scams, TPR warns

TPR scams strategy

Hope William-Smith
clock 03 August 2022 • 2 min read