The FSCS is to levy firms £532m this year - £16m more than it forecast in its 2019/20 Plan and Budget in January - although the levy required for life, pensions and investment advice has reduced by £29m to £211m.
Announcing its final levy for 2019/20, the Financial Services Compensation Scheme (FSCS) said the main reasons for the increase between the figure forecast in January and the final one were an uplift in the number of claims expected against SIPP operators and an upwards revision to "the expected continuing costs in some historic insurances failures". In a statement, the lifeboat fund added: "As in 2018/19, the main driver of the compensation costs falling on the FSCS this year will continue to be pension claims. The bulk of these claims will continue to arise from bad advice to transfer ...
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