Providers and advisers should share the burden of Financial Services Compensation Scheme bills, Aegon says.
In its response to the FCA consultation paper to review FSCS funding, Aegon pensions director Steven Cameron says the regulator must avoid over-burdening intermediaries with a disproportionate share of overall levies.
He says: “It’s ultimately not in the customer’s interest if the funding comes at the expense of unreasonably high levies for advisers. In a post-RDR world, higher FSCS adviser levies result in customers being presented with higher adviser charges, which may put them off seeking advice. Clearly, this wouldn’t be a positive outcome at a time when individuals need help with their personal financial responsibilities more than ever.”
Cameron adds: “The FCA consultation is an opportunity to thoroughly re-examine the best ways of funding the compensation scheme. The FSCS is a necessary ‘price to play’ for all in the financial services industry – product providers, asset managers and intermediaries alike. Ideally, those firms generating greater risks should pay a greater share of the levies.”
Aegon’s position runs against comments made by the Association of British Insurers’, which criticised the proposal contained in the consulation for providers to pay more to guard against advice firm and other intermediary failures.
ABI regulation director Hugh Savill says: “We see no justification for the blurring of responsibilities in this way. We will be engaging fully in the consultation, with a focus on challenging the rationale behind this idea.”
Aegon left the ABI at the end of 2015.