The final rules for the Financial Services Compensation Scheme, due to come into effect on December 1, have been finalised. IFAs will have their own category, which will not include the cost of redress for the pension review.
If an IFA firm goes into default, the rest of the IFAs will share the cost of compensating investors or paying liabilities. A voluntary arrangement with providers sees them pay 85 per cent of the levy. IFAs will pay a fee for costs of running the scheme, which is 1.5 per cent of the fees they pay to the FSA.