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FSCS delays £30m interim levy for investment advisers

The Financial Services Compensation Scheme has announced it will no longer raise a £30m interim levy on investment intermediaries before the end of this financial year.

However, the sum is likely to be raised in 2014/15 instead as the scheme works through claims against Catalyst Investment Group. 

The FSCS had planned to raise an interim levy on investment intermediaries in 2013/14, largely as a result of claims relating to the failure of life settlement firm Catalyst.

But the FSCS now says the processing of claims against Catalyst has been delayed, and it expects to start processing claims against Catalyst later than previously thought. This means the majority of costs are likely to fall in the 2014/15 financial year.

FSCS chief executive Mark Neale says: “New information on the volume and timing of claims suggests we do not need to levy the industry for more money during 2013/14. That is good news for firms.

“We still expect claims relating to Catalyst Investment Group during next year. So, we will update the industry when we have more information on what this change means for 2014/15 when we announce the levy in April.”

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Comments

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

  1. Hmm, slightly different twist on the same story in NMA, who seem to be suggesting that the FSCS have reviewed and revised their assumptions, so don’t need to apply the levy. Is this your interpretation or is it due to the changed assumptions by FSCS? if so what on earth are they, £30m isn’t an insignificant sum for small firms.

  2. Dominic

    FSCS announcement on their site confirms a “delay” into the 2014/15 levy year rather than them not needing to apply one at all. Apparently they will let us know later- that’s good of them!!

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