FSCS to enforce extra £78m levy on financial advisers

Rising claims against pensions advisers

Tom Ellis
clock • 2 min read

Financial advisers will have to pay an extra £78m towards the funding of the Financial Services Compensation Scheme (FSCS) in the 2018/19 levy year as a result of the rising costs of claims against them.

The supplementary levy means that, in total, advice firms will have paid a total of £197m towards the running of the lifeboat fund in 2018/19. The FSCS has also released its budget for the next financial year and it is expected to need to raise £240m from the life and pensions intermediary class and the investment intermediary class, which is largely made up of financial advice firms. It will be the first funding year where providers have to chip in around 25% of the costs to help advisers out, however, and so advisers in the funding class will pay a forecasted £175m instead. Provider...

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