Investment advisers are facing a £76m Financial Services Compensation Scheme levy for 2013/14, plus an interim levy of £25m for 2012/13.
In its plan and budget for 2013/14, published today, the FSCS has provided indicative figures about claim assumptions and levy estimates for the next financial year. The total FSCS levy bill for 2013/14 is likely to reach £311m, up 17 per cent from £265m in 2012/13.
The FSCS is forecasting an interim levy of £25m for investment advisers based on higher than expected compensation costs relating to Pritchard Stockbrokers and spreadbetting firm Worldspreads. It first signalled an interim levy was likely for the investment intermediation class in November.
Investment advisers estimated FSCS levy costs for next year are down 3 per cent from £78m for 2012/13.
The life and pensions adviser sub-class has seen a more significant 63 per cent reduction in their annual FSCS levy, from £46m to £17m.
The FSCS is not expecting any claims against fund managers for 2013/14. But the FSCS announced last week fund managers are being hit with a new £31m levy following recalculations of the interim £326m interim industry levy for 2010/11. Investment advisers are contributing £300,000.