IFAs are to be stung with a 50 per cent increase in Invest ors'
Compensation Scheme fees to fund expected record compensation payouts due
to the pension review.
Firms will pay out between £450 per registered individual by the end of
the year. The biggest bill will be for Misys, which has around 4,000 RIs
and faces a bill of nearly £2m.
Misys says good IFAs are being penalised for bad ones. It is lobbying the
ICS for a product levy instead.
The lion's share of the cash will come through the PIA, which will charge
life offices and IFAs around £62.8m out of the total levy of £66.3m. The
ICS will charge a further levy in October for the last three months of the
The ICS says the increase reflects the rise in the average payout to
investors from £10,000 to £15,000.
Chief executive Myra Kinghorn says: “We are making a large levy. It
reflects the volume of new claims.”