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£9m deal gives IFAs further fee and FSCS subsidy

IFAs will continue to see their compensation scheme costs and regulatory fees subsidised by product providers in a deal worth £9m next year, which was announced by the ABI and Aifa this week.

The three-year agreement marks a continuation of the 85 per cent subsidy by providers of the fees paid by IFAs to the Financial Services Compensation Scheme and a 20 per cent contribution towards IFAs&#39 regulatory fees.

Both subsidies existed under the PIA and both were expected to continue, as exclusively reported in Money Marketing in May this year.

The deal is being funded by the 20-member IFA Life Office Group and administered by Pass Fees, a subsidiary of the Pension Advisers Support System.

Pass Fees will invite IFAs to apply to for the subsidy. IFAs will have to provide a copy of payment requests from the FSA for the subsidy to be calculated.

Aifa director general Paul Smee says: “We are delighted that IFAs will continue to receive financial support from product providers. It will make a big difference to IFA firms of all sizes, especially when the market is facing uncertainty over increased costs.”

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