View more on these topics

FSCS says it could cut 27m fund levy

The Financial Services Compensation Scheme has admitted it could reduce the massive 27m split-cap levy on fund management firms after protests from the Investment Management Association.

The FSCS has proposed the figure to meet the liabilities of the split-cap debacle but the IMA says the FSCS has a responsibility to use its power to impose levies only if it has reasonable grounds for believing it needs to raise additional funds. It thinks the 27m involves a series of assumptions about events that may not happen.

The FSCS has responded by assuring firms that it is not looking to build up a fund for future years and that it is open to making changes when levies are set in March, hinting at a possible climbdown.

FSCS chief executive Loretta Minghella says: “I am sure that most people appreciate that FSCS has access to sensitive, confidential information and uses this to assist it in forecasting claims. If the information available to us at the time of fixing the levy suggests it would be unreasonable to levy at the levels indicated in January, we will make the necessary adjustments.”

IMA chief executive Richard Saunders says: “It is not necessary for the FSCS to be raising this levy at this stage. It is too soon to say that there will be a surge of compensation awards in the coming year. It would make more sense for the FSCS to await real evidence of eligible claims before deciding whether it needs to raise additional funds from our members.”


Verity’s view

On February 22, pensions minister Malcolm Wicks provided about 60,000 worried people with the reassurance they had been waiting for. Those 60,000 were, of course, the unfortunates whose companies went bust with big holes in their pension schemes before they had retired, robbing them of benefits worth tens or even hundreds of thousands of pounds.

SPML enhances its whole product range

Southern Pacific Mortgage Limited announces product enhancements across its entire product range. These include enhanced income multiples and higher lending values. Income multiples up to 75 per cent LTV on SPMLs Prime Product Range (Prime, Prime+, and Prime Buy to Let) and its Light Adverse schemes have been increased to 4 x +1 or 3.5 […]

Hales’ wise words on commission

Everybody’s talking about commission again. Norwich Union’s sales and marketing director Peter Hales says that in a personal capacity, he would like to see pension commission increased.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm