FSCS cuts levies but wealth managers facing higher bill

By John Kenchington

Added 12th April 2017

The Financial Services Compensation Scheme (FSCS) is raising its investment intermediary levy for the 2017/18 year by £4m in spite of an overall budget cut.

FSCS cuts levies but wealth managers facing higher bill
The scheme has announced a final levy for this year of £88m for the investment intermediation class (SD02), £4m higher than the £84m indicative figure published in January.
 
The overall FSCS levy budget has been cut by £15m to £363m, thanks largely to a bumper £24m cut for the life & pensions intermediation class.
 
The scheme collects money from the industry to cover investors' losses if products collapse, but some advisers feel product providers should shoulder a greater share of the levy burden.
 
Today's fee hike for advisers is also likely to fuel anger that the scheme unfairly charges the whole industry for the actions of a few reckless product providers.
 
An ongoing consultation into the FSCS's levy model is investigating whether firms should be levied based on the riskiness of the products they promote.
 
FSCS chief executive Mark Neale said: “Although the indicative forecasts we published in January and our final levy numbers this year are broadly similar, firms know that our levies can be unpredictable owing to the nature of some failures and the claims they generate.
 
"We welcome the continued support of levypayers at this time."
 

Sponsors

Portfolio Adviser: Guide to Europe

Portfolio Adviser: Guide to Europe

After a politically turbulent time in 2016, Europe has been under scrutiny with several nations going to the polls.The question asked, would investors be right to...

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

AXA Distribution Fund
AXA Distribution Fund

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Income 2017
PA Income 2017

Tuesday 4 July
Radisson Blu Edwardian Bloomsbury Street Hotel 

PA Edinburgh 2017
PA Edinburgh 2017

Thursday 7 September
Balmoral Hotel

PA Alternatives 2017
PA Alternatives 2017

Tuesday 12 September
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

Sponsored Content

OTHER STORIES FROM LAST WORD...