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FSCS adviser levies to be lower than predicted

The Financial Services Compensation Scheme is expected to announce much lower adviser levies than the £40m previously estimated.

Money Marketing understands that as a result of refined forecasts some sub-classes, including investment intermediaries and insurance intermediaries, will see lower levies than first thought for 2011/12.

The FSCS is also expected to provide more details about how recoveries between the sub-classes will be credited. This follows news that Norwich & Peterborough Building Society is to repay the FSCS for payments the scheme has already made to N&P customers who invested in Keydata products.

The  FSCS announced in February an indicative total levy bill of £240m for 2011/12.

Investment intermediaries were forecast to account for £40m of the total levy, up from £20.3m the previous year.

The annual levy for 2011/12 comes on top of the £93m interim levy on advisers for 2010/11 announced in January, mainly to cover the cost of failed Keydata unit Lifemark.

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