Rising DB transfer claims push 2018/19 FSCS levy to £407m

£71m up on January forecast

Julian Marr
clock • 2 min read

The FSCS has cited the growing number of claims relating to defined benefit (DB) pension transfers as the main reason for the lifeboat scheme's levy for this year being a fifth higher than it forecast in January.

Confirming the final total this morning, the Financial Services Compensation Scheme (FSCS) said it would levy firms £407m for 2018/19 - £71m more than it forecast in its Plan and Budget at the start of the year. This includes management expenses of £72.7m and compares with a total levy of £363m in 2017/18. The lion's share of the increase - £52m - relates to the life and pension intermediaries funding class, with the FSCS pointing to the rise in DB pension transfer claims and noting £10m had been set aside to pay for claims against "a number of independent financial advisers". One of the...

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