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Advisers urged to lobby MPs on soaring FSCS costs

Advisers should lobby their local MPs over the increases to their Financial Services Compensation Scheme bills, according to Tenet distribution and development director Keith Richards.

Some adviser firms have been hit with massive increases to their FSCS bills as a result of the £93m interim adviser levy, mainly to cover compensation costs relating to failed Keydata unit Lifemark.

One delegate at the Tenet annual business conference, held last week, has an appointment with his MP to raise the issue.

He said: “Is it going to be the case that every time someone else makes a mistake we are going to have to pay for it? We cannot stand by and let this happen any longer.”

His point was met with a round of applause.

Richards said: “We are outraged by this continuing burden, which was actually caused by regulatory failure.

“If every adviser were to write to their MP, setting out the impact of the FSCS bill on constituents, the adviser’s business and the country, it would mean more MPs would start to get the message and give more weight to our lobbying organisations.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. All fellow IFA’s
    Send a FOI request to the FSCS regarding this issue , and their reasons behind finding lifemark valueless. You have a right to know why you are paying when they say this portfolio has no value. According to the leader of the Keydata victims website, this portfolio just realised $15 million dollars in december from a death !!!!!! Ask for the actuarial and accounting analysis behind their decision. If this thing has a value, why are we paying to cover it, especially if we didnt sell it !!
    Please send the FOI request and do it now, so we can find out the truth and fight this levy.

  2. The FSA isn’t listening. Never has, never will. But we do need to lobby our MP’s so that never again will the industry be saddled with an unbridled and unaccountable monster such as the FSA which sets its own agenda and then tramples roughshod over anyone and any body that dares to try to stand in its way. Those who try to do so risk merely being squashed underfoot like some tiresome and inconsequential insect.

    And all,the time, the FSA refuses even to acknowledge the iniquity of these impositions which, as Keith Richards points out, are perpetrated largely to deflect attention from the FSA’s own regulatory failings. If there’s ever been a more wasteful or hated quango in history than the FSA, then it’s hard to think of one.

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