Why well-run advice firms still shoulder an unfair FSCS burden - and what needs to change

clock • 4 min read

Tom Hegarty shares his views on the FSCS levy and why things need to change...

For much more than a decade, advisers have warned that the Financial Services Compensation Scheme (FSCS) levy is an unpredictable, uncontrollable cost that hits well-run businesses the hardest. Despite some recent good news, the fundamental challenge - that the levy's design still socialises the cost of poor conduct across thousands of compliant intermediaries -, remains. If we want a thriving advice market that serves consumers, advice businesses, and society as a whole, the funding model needs to be fairer, more transparent, more targeted, and future fit. In its November outlook,...

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