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FSCS: 110 biggest firms will pay almost 61% of 2019/20 levy

FSCS chief executive Caroline Rainbird

The Financial Services Compensation Scheme has today published indicative numbers that illustrate how its levy will be distributed across 46,000 firms in 2019/20.

It shows the top 110 firms, comprising 0.2 per cent of the total levy paying population, will pay an average of £3m, almost 61 per cent of the total levy bill.

The majority of levy payers, 59 per cent, will pay less than £50 while more than 4,500 firms will not pay any levy, instead they will each receive an average rebate of £139.

The figures in the update are the current forecasts for FSCS’s 2019/20 levy figures, although, as in past years, it may be necessary for FSCS to raise additional levies.

FSCS chief executive Caroline Rainbird says: “We do not take for granted the impact of our levy, as we recognise it can be a significant and unwelcome expense for many firms.

“The levy enables FSCS to protect thousands of people each year who have nowhere else to turn when financial service firms fail. Our staff focus on the need for value for money, whilst working hard to deliver an effective and empathetic service to customers, many of whom are in a really tough place. Their professionalism also helps to restore consumer confidence in the financial services industry.”

Earlier in the week FSCS chief operating officer Jimmy Barber told the Treasury select committee it has been bolstering its staff numbers amid increasing amounts of complex complaints as it prepares to deal with a further influx of Sipp cases.

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Comments

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

  1. This statistic does not surprise me, if anything I’m surprised the number of firms is so high when you think about how many financial advisers sit within the top 20 firms by size.
    I would love to know the distribution of the approved persons giving advice – no one seems to know?
    Paul Miles

  2. Why do some firms not have to pay a levy? This seems a little unfair. Are those at bigger firms a bigger risk?

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