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,...

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

Reality TV 'finfluencers' sentenced

Reality TV 'finfluencers' sentenced

Had combined Instagram following of 4.5 million

Jen Frost
clock 23 February 2026 • 2 min read
FCA CEO sets out shift in regulator's approach with 'less rules'

FCA CEO sets out shift in regulator's approach with 'less rules'

Consumer Duty ‘will do a lot of the work for us’

Isabel Baxter
clock 18 February 2026 • 2 min read
Failed financial advice firms tracker

Failed financial advice firms tracker

Firms that the FSCS has confirmed as failed since the start of 2023

Professional Adviser
clock 17 February 2026 • 1 min read