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FSCS investment adviser costs to remain huge for 2013/14

FSCS Interior 480

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.

Proposed indicative 2013/14 annual levy

FSCS-table-2013/14

Claims assumptions for 2012/13 and 2013/14

FSCS claims assumptions

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Dear God

    I don’t speak to you that often, but know you are there. Will you send a saviour to save the Uk financial services industry from total ruin ?

    Anyone will do, as long as they have QCF level 4 or 6.

    So mote it be !

    All my best wishes to you and the family of angels above, but we need him / her quickly.

    PS – Don’t send anyone with the name Sants or Nicoll.

  2. Dearest Ned

    History shows that I can be a capricious God and for reasons that only I can divine, I have inflicted the FSA/FCA/FOS upon you and your brethren.

    In the words of one that I shall definately be sending ‘downstairs’ when the time comes :

    “Be afraid, very afraid”.

    Amen (and Awoman).

    GOD

  3. Dear Ned & God,

    My plan is working perfectly.

    Viva el FSA !!

    (y, lo siento a los Espanoles. Lo es solo una expresion)

    El Diablo

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