View more on these topics

ABI move to set up loan scheme to pay FSCS levy

The ABI is believed to be in talks with the FSA over a loan sch-eme to enable IFAs to pay Fin-ancial Services Compensation Scheme fees in instalments.

The ABI is negotiating with the FSA over establishing a loan service that intermediaries can dip into to pay the FSCS levy.

Officially, the ABI says there is no change to the situation regarding payments to IFAs. Providers volunteered to pay an extra 1.5m to the FSCS this year in addition to the 3m paid in the last three years.

There have been calls for the FSA to allow IFAs to pay in instalments but the regulator is known to be reluctant to allow this since it would mean the unprecedented move of applying for credit status. How-ever, it is thought that some deal may be struck offering a preferential rate of interest.

When the FSCS levy was increased last year, many IFAs struggled to meet the extra cost. This was combined with the closure of the Pass scheme which provided subsidies for the levy.

It is thought that another solution would be to get the FSCS budget approved at an earlier stage so that firms would have seven to eight months to save for the levy.

ABI spokesman Leonie Edwards says: “There is nothing more to say about the situation other than that prov-iders have recently agreed to pay an extra 1.5m to the FSCS this year. This was in addition to the 3m given in the last three years. That is the situation as it stands.”

The FSA declined to comment.

Recommended

What’s up doc?

Some people will do anything not to use public transport. So when Legg Mason’s Peter Boughton was dragged on the London Tube by colleague Zoe Burton he took his detox diet with him. “It was like having Bugs Bunny on the tube. He sat there munching away on his carrot for the whole journey. We […]

Global income: preparing for a rate rise…

In the five years since we launched the Artemis Global Income Fund, its manager Jacob de Tusch-Lec has built a distinctive portfolio that is first among its peers. Here he explains why his “quality, cyclical and value yield” stocks, and flexible approach, leave the fund better placed to benefit from uncertainty than funds that depend […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com