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FSCS investment adviser levy set at £112m for 2014/15

The Financial Services Compensation Scheme has increased the invest-ment adviser levy for 2014/15 by 7 per cent from a projected £105m to £112m despite a decrease in the overall industry levy.

The FSCS set out its industry levy estimates in January and published final figures this week.

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

But investment advisers will have to pay more than the estimate to cover the cost of claims against collapsed life settlement firm Catalyst. 

The FSCS deferred a potential interim levy of £30m, largely relating to Catalyst claims for 2013/14. Investment advisers paid £78m in levies for that.

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

FSCS chief executive Mark Neale says: “The levies will enable the FSCS to protect consumers during 2014/15. That, as always, is our top priority.”

Michael Glenister

 

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