FSCS anticipates levy drop to £342m in 2026/27

In an update from its CEO Martin Beauchamp today (12 November), the FSCS set out that this is based on a forecast of £294m in compensation costs for 2026/27. "These early expectations for 2026/27 reflect the changing claims environment," Beauchamp said. "We currently forecast lower compensation costs in the Investment Provision class, mainly driven by fewer claims against self-invested personal pension (SIPP) operators. A higher opening balance in this class is also anticipated as we carry forward surpluses from 2025/26." In addition, the FSCS expects some funding classes to begin the...