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FSCS adviser bill up 6.6 per cent despite overall levy reduction

The FSCS has set the adviser levy for 2014/15 at £112m, up £7m on the January projection, despite the overall levy on the financial services industry falling.

Financial services firms will pay £37m less to the FSCS than projected in January after the overall levy was today set at a total of £276m, down from the provisional £313m set out in the FSCS budget in January. 

But the FSCS will levy investment intermediaries £112m in 2014/15, having previously predicted a figure of £105m in January.

The FSCS says the figure includes the cost of Catalyst claims after it deferred a potential interim levy of £30m in 2013/14.

The investment intermediation levy compares to an annual levy of £78m for 2013/14.

The compensation scheme says that the lower overall levy is due to a fall in claims and says it “tentatively believes that PPI claims may have peaked last year and be set on a downward trend”.

FSCS Chief Executive, Mark Neale, says: “There is good news today for many firms. Our overall levy for the coming year is down from earlier indications. That partly reflects an expectation of lower claims volumes.

“But fund managers and investment intermediaries are also benefiting from our success in making recoveries. We have secured many millions of pounds for them and will continue to pursue recoveries wherever it is cost-effective to do so.

“These levies will enable FSCS to protect consumers in 2014/15. That, as always, is our top priority. It is reflected in the investment we are making in the year ahead in the modernisation of our service which for, the first time, will enable consumers to claim online. This is part of our broader strategy.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Presumably this is the outcome of the FCA’s “consultation” on proposals for a product levy?

  2. It’s just a bottomless well they have to draw from. It could have been 13.2% as all they do is think of a number and double it.

    “These levies will enable FSCS to protect consumers in 2014/15. That, as always, is our top priority. It is reflected in the investment we are making in the year ahead in the modernisation of our service which for, the first time, will enable consumers to claim online. This is part of our broader strategy.”

    A broader strategy that is implemented on the backs of others. I wonder if the likes of Mark Neale would think this is all good news if it affected his salary in a negative way? I doubt it.

  3. Perhaps if they didn’t waste money with the ,likes of Herbert Smith we might have actually seen a small reduction. The outcome from the ill conceived action concerning Key Data will doubtless cause some red faces – probably after some monumental spinning to justify themselves in the first place.

  4. Come on lads, they have to build a nice reserve, either to cover the costs of the Lloyds share debacle or the redundancy fall outs from that.
    And you all know that IFAs were intimately involved in the release of that now infamous document. Don’t argue – you know the FCA are infallible.

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