Gareth James looks at spiralling FSCS levy demands, the regulator's funding review and asks how the compensation system can be changed for the better
The cost of the Financial Services Compensation Scheme (FSCS) levy to life and pensions advisers rose by £85m in 2015/16. Had this been from a starting point of several hundred million pounds the increase would have been significant. When you consider that the starting point for this increase was a 2014/15 levy of £34.5m, the increase is staggering. In the context of an increasing and unpredictable levy, it is not surprising that the Financial Conduct Authority (FCA) is reviewing how the FSCS is funded. The possibility of risk-based levies, amended funding classes and better use of cr...
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