The Financial Services Compensation Scheme’s review of refunds for firms that were overcharged for the interim FSCS levy has been delayed and will now run into next year.
It had hoped to issue all refunds by the end of December. The collapse of Keydata triggered a £326m interim industry levy in January, with advisers paying £93m. Firms’ share of the levy was based on tariff data submitted to the FSA. Some advisers saw huge rises due to changes in the way it was calculated and applied for a reduction by resubmitting their tariff data.
In July, the FSCS revealed that it had set aside £30m to repay firms that had been overcharged while companies claimed refunds totalling £80m.
An FSCS spokesman says: “We expect to have issued decisions to most of the firms that have resubmitted their tariff data by the end of 2011. However, there remain a number of outstanding issues which mean the reconciliation process will now continue into the new year.”
Once the review is completed, some firms may face a rise in their levy to make up the amount that has been refunded.
Money Marketing understands delays have been caused by incomplete resubmissions. Fund firms and IFAs have resubmitted their tariff data.
Yellowtail Financial Planning managing director Dennis Hall says: “Everyone else will suffer because the FSCS can now ask for more money.”