Investment intermediaries face a Financial Services Compensation Scheme annual levy of £105m for 2014/15, the scheme reveals in its plan and budget today.
This is up from an annual levy of £78m for 2013/14, but the FSCS also expects to raise an interim levy of £30m on investment intermediaries before the end of the current financial year, taking costs for 2013/14 to £108m.
Life and pensions intermediaries face a levy of £40m for 2014/15, up from £13m for 2013/14.
In 2014/15, financial services firms will pay a total levy bill of £313m to cover compensation and base costs, which compares to total levies so far in 2013/14 of £285m, although this does not include the £30m interim levy for investment intermediaries.
The FSCS expects the overall volume of new claims it receives to be 20 per cent higher in 2014/15 than in 2013/14, at 34,724 compared to 28,052.
It says this will be driven by high volumes of payment protection insurance claims.
The 2014/15 levy is the first to be calculated under the FSCS’s new 36-month funding approach, which it says will reduce the volatility of annual levies and the likelihood of interim levies.
FSCS chief executive Mark Neale says: “Our mission is to provide a responsive, well-understood and efficient compensation scheme for customers of financial services, which raises public confidence in the industry.
“2014/15 marks the first time we will calculate the annual levy with our new 36-month funding approach, which we believe will go some way to reducing volatility of annual levies and provide the industry with greater certainty.”