Where to next for the FSCS levy after recent developments?

‘One positive aspect of the recent reduction is the successful recoveries’

clock • 2 min read

Following the recent article in Professional Adviser on the Financial Services Compensation Scheme (FSCS) announcing a significant reduction in its annual levy for the 2024/25 financial year, John Netting looks back over time to see what history could tell us about where things might go from here…

While £265m is a relatively small reduction from the previous year's £270m levy, it is a more significant decline from the £415m forecasted in November last year and will bring immediate financial relief to the firms contributing to the scheme. The FSCS levies have varied significantly over the years, reflecting the financial environment and the number of firm failures that required compensation. Here's a summary of the overall FSCS levies in recent years: 2023/24: £270m 2022/23: £625m 2021/22: £717m 2020/21: £649m 2019/20: £532m 2018/19: £407m These figures clearly demons...

To continue reading this article...

Join Professional Adviser for free

  • 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

FCA to extend bullying and harassment rules to non-banks

FCA to extend bullying and harassment rules to non-banks

Extension will apply to 37,000 firms

Cristian Angeloni
clock 02 July 2025 • 2 min read
Regulatory necessity: Why data is no longer a 'nice to have'

Regulatory necessity: Why data is no longer a 'nice to have'

Client-led, data-driven

Paul Bruns
clock 01 July 2025 • 5 min read
Targeted Support: One-off firm costs could approach £69m

Targeted Support: One-off firm costs could approach £69m

One firm estimated IT costs of £1m a year alone

Jen Frost
clock 01 July 2025 • 3 min read