Investment advisers face £108m FSCS levy


Investment advisers are to pay £108m to the FSCS levy in the coming year, with the total industry levy rising to £363m.

Life and pensions intermediaries will pay £80m in the 2016/17 financial year.

The FSCS says the hike for life and pension intermediaries is due to the increasing number of claims for people wrongfully advised to move their personal savings into a Sipp.

The body also sees a rising number of claims for people who have seen investment losses after being advised to put assets in “risky, non-standard assets such as overseas property development”.

Mark Neale, chief executive of the FSCS, says that as a decision has not been made about whether these investors will get compensation, the levy for life and pension intermediaries could rise.

The current figures, published in the FSCS’s plan and budget for 2016/17 released today, are estimated, with final levy figures to be released in April.

Figures are worked out based on a three-year average with the annual fee determined for each year.

“Overall, we’re moving towards streamlining our claims, reducing management and operating costs, which benefits our levy payers, and creating a better experience for consumers,” says Neale.