The Financial Services Compensation Scheme has set the final levy for investment advisers for 2013/14 at £78m, up from the earlier estimate of £76m.
The increase in the investment adviser annual levy comes despite the overall FSCS levy falling 8 per cent from an indicative levy of £311m to a final levy of £285m. Investment advisers are the only funding class to see their levy increase compared to the indicative numbers published in February.
The £78m annual levy for 2013/14 comes on top of a £20m interim levy on investment advisers for 2012/13.
Life and pensions advisers have seen their annual levy fall 24 per cent from an indicative £17m to a final £13m. Fund managers are not being levied for 2013/14.
The investment adviser levy is to pay for claims relating to the collapse of MF Global, spreadbetting firm Worldspreads and Pritchards Stockbrokers. It also covers the cost of claims relating to Arch cru, following the introduction of a consumer redress scheme this month which will allow clients to opt in if they want their advice to invest in Arch cru reviewed.
FSCS chief executive Mark Neale says: “Although we are pleased to announce a levy that is £26m less than originally projected, we are aware of the impact that our levies have on firms. In particular, we are mindful of the fact that, in addition to this levy, firms in the investment and insurance intermediation classes recently received invoices in respect of the interim levy we announced in March.
Firms will be invoiced for the annual FSCS levy in July.