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Advisers support for FSCS excess charge

More than half of IFAs fear being unable to pay increasing FSCS levies while a similar number support the deduction of an excess from customers receiving FSCS compensation.

A survey of 491 IFAs conducted by PanaceaIFA shows 54 per cent feel those receiving compensation from the FSCS should have an excess deducted to help with funding, while 52 per cent of advisers fear that increasing levies imposed by the FSCS could lead to their firm being unable to pay.

An overwhelming majority, 97 per cent, feel the current system unfairly penalises responsible firms for the malpractice of others

The survey also finds 64 per cent of advisers do not have run-off cover.

PanaceaIFA chief executive Derek Bradley says: “Whilst IFAs would like to see the ‘sinner’ pay the increasing cost of the levy, it is because of their ‘sins’ and resulting demise that they cannot. Despite this, the need for a better FSCS levy solution is clear as the burden cannot always fall on the IFA.”

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There is one comment at the moment, we would love to hear your opinion too.

  1. Martin Wheatley may have expressed sympathy for the plight of IFA’s with regard to what is clearly becoming a crippling burden but, as always, actions speak louder than words. How about some action, Mr Wheatley, to address this dreadful state of affairs? Or are you quietly content to sit back and allow a few thousand more IFA firms to go to the wall?

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