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FSCS levies to remain unchanged despite MF Global returns

Advisers are unlikely to see their Financial Services Compensation Scheme levies reduced despite a High Court order which will see around £54m of client assets returned to MF Global investors.

Last week the High Court approved a plan by MF Global UK special administrators KPMG which will kickstart the process for retuning approximately £54m to investors.

KPMG expects to begin distributing client assets from next month.

However Money Marketing understands the distribution plan will have no impact on the sizeable FSCS levies advisers are facing in relation to MF Global claims.

Investment advisers have been hit with a £60m FSCS interim levy for 2011/12, with MF Global claims expected to account for £27m. In April the FSCS set the annual levy for 2012/13 as £78m for investment advisers and £46m for life and pensions advisers. It also warned costs relating to MF Global could result in further interim levies.

The FSCS declined to comment.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. They seem to operate the “heads I win, tails you use lose” system!

  2. In anticipation of the next motorway pile-up that the FSA should avert but will no doubt fail to, with the consequences dumped onto the IFA sector, this is hardly a surprise. Remember, the fall-out from Honister’s collapse is on its way and, with PI insurers withdrawing from the market left, right and centre, there’ll doubtless be others, including a few providers whose demise will, somehow or other, be twisted round to be down to IFA’s as well. Worse still, the FSA’s interpretation of who’s to blame is completely unchallengeable because it’s a totally unregulated regulator, accountable only to its own board which, of course, means accountable to nobody. Dreadful.

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