The Financial Services Compensation Scheme says it expects to raise an interim levy of £29.5m on investment intermediaries before June 2014.
Last month, the FSCS said the compensation costs resulting from the default of life settlement firm Catalyst meant an interim levy would be triggered for investment advisers before the end of the levy year.
In its monthly newsletter published today, the FSCS says it expects to face a deficit of £29.5m on investment intermediation for 2013/14.
It also warns it may incur higher compensation costs in the life and pension intermediation class following the liquidation of TailorMade Independent, which entered voluntary liquidation last month, but says costs are uncertain at this stage.
It currently expects to have a surplus of £1.9m for the life and pensions intermediation class for 2013/14.
FSCS chief executive Mark Neale says: “I appreciate the interim levy will not be welcome news for our levy payers but it does reflect the need to safeguard consumers against the risk of misselling by often poorly capitalised intermediaries.”
The FSCS says compensation costs relating to Catalyst are expected to run into the tens of millions of pounds, and will span both the 2013/14 and 2014/15 levy years.
Also within the investment intermediation class, the FSCS says it has processed over 2,000 claims to date relating to Fyshe Horton, and has started to pay compensation to eligible claimants.
It says it continues to receive claims relating to Pritchard Stockbrokers and MF Global, although in low volumes.
In addition, the FSCS says it continues to process claims relating to advice given to invest in Arch Cru funds by defaulted advisers, while the default of WorldSpreads appears to be nearing its end, with decisions yet to be issued on just a few claims.
In April the FSCS set the annual levy for investment advisers for 2013/14 at £78m. Investment advisers have to meet the cost of FSCS claims up to £150m in one financial year, after the annual claims limit rose from £100m to £150m in January.