FSCS running costs predicted to hit £95.5m next year

Complex advice claims drive higher costs

Jenna Brown
clock • 2 min read

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 get back on track as quickly as possible", FSCS predicts needing annual management expenses of £95.5m for the following financial year.    However, it added the total levy (including both management expenses and compensation costs) for 2022/23 remains forecast at £900m. The Prudential Regulation Authority and Financial Conduct Authority are consulting on an overall management expenses levy l...

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