View more on these topics

IBRC in late bid to avoid ICS levy

Over 4,000 IFAs regulated by the Insurance Brokers Registration Council are set to contribute to the Investors&#39 Compensation Scheme for the first time.

The Financial Services Authority is to include IFAs registered by recognised professional bodies such as the IBRC when it creates a super-compensation scheme next year.

Under the current rules, the 4,142 individual advisers registered by the IBRC escape paying ICS levies.

They could now be hit by an ICS bill amounting to several hundred pounds each. Some members fear the bills could force firms out of business.

Details of the new ICS are yet to be finalised and the IBRC still hopes to avoid coming under the ICS regime. It wants to maintain partial regulatory freedom.

Deputy registrar Alison Carr says: "We are looking for views from the Treasury and are holding talks with the FSA. But it is quite likely to happen although it is not set in stone."

IBRC member and Bridgland Insurance Brokers principal Tony Bridgland says: "This is another disgraceful move. The IBRC is to be swallowed up and we face paying enormous sums of money. If this is the case, it means members are facing great hardship because of the big boys doing wrong."

IBRC members pay a grant levy and a registration fee of about £850 a year to be regulated by the body. The size of fee depends on the amount of each IFA&#39s investment business.

Recommended

DSS misses point on stakeholder pensions

The 64 questions in the recent DSS consultation document on stakeholder pensions range from the general to the very detailed. For example: “What would be the most appropriate way of establishing stakeholder pension schemes so as to provide security for members and effective mechanisms for ensuring that schemes are run in the interests of members […]

FSA warning on Year 2000 compliancy

The Financial Services Authority is putting pressure on financial firms to ensure their computers are Year 2000 compliant. Chairman Howard Davies told a regulation conference in London last week that firms must be Year 2000 compliant by the end of next year. In the spring, the FSA will take over the regulation of all firms […]

Europe: why persist with value today?

By Rob Burnett, Neptune’s Head of European Equities The Neptune European Opportunities Fund remains committed to a value bias. We see a broadening array of opportunities in diversified industries at compelling valuations today. The most complicated part of the market is the European banks. We are currently overweight in this sub-sector as many banks are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment