The Financial Services Compensation Scheme expects claims against investment intermediaries to halve in 2015/16 as claims relating to Catalyst and Arch cru drop off.
The FSCS says its annual levy for 2015/16 will be set at £287m, a 4 per cent increase on the total levies so far in 2014/15 of £276m.
In an announcement today ahead of the publication of its plan and budget, the FSCS says new claims against investment intermediaries will reduce from 10,325 in 2014/15 to 5,353 in 2015/16.
It says claims against Catalyst Investment Group and Arch Cru appear to be coming to an end. However, it says other types of investment claims will continue in “steady volumes”.
The FSCS says it expects an 8 per cent reduction in the total volume of new claims next year, from 28,108 in 2014/15 to 25,590.
It says this is down to an expected fall in the number of claims relating to payment protection insurance and mortgage endowments.
However, it says it expects to see a “significant” increase in compensation costs arising from advice to transfer pensions into self-invested personal pensions.
FSCS chief executive Mark Neale says: “FSCS is there for consumers when firms fail. It makes a valuable contribution to consumer confidence as a result. During 2015/16, we will again come to the aid of thousands of consumers when firms go bust.
“We take our accountability to levy payers very seriously. That’s why we publish our plan and budget.”