The Financial Services Compensation Scheme has announced that financial services firms face a total levy bill of £240m for 2011/12, with investment intermediaries accounting for about £40m.
This comes on top off of the £93m interim levy on advisers for 2010/11, mainly to cover the cost of failed Keydata unit Lifemark.
The annual levy for the investment intermediation sub-class is up from £20.3m last year.
Total levies for 2011/12 have fallen compared to the levy total for 2010/11 of £474m.
For the life and pensions intermediation sub-class, the levy has gone from £9.6m last year to an indicative levy of £10.5m.
The levy for general insurance intermediation has shot up from £59.6m to an indicative levy of £93.5m for 2011/12.
Most IFAs will fall under both investment intermediation and general insurance intermediation sub-classes, depending on the make-up of the business they write.
The FSCS predicts that claims relating to payment protection insurance are likely to increase to about 20,000 in the coming year.
It believes that high-profile investment failures, such as Keydata, are likely to fall away to a total of about 2,500 claims.
FSCS chief executive Mark Neale says: “We have discussed our estimates for the coming financial year with all the trade organisations and listened to industry concerns about the costs of protecting consumers.
“We always welcome a healthy debate about our work and encourage the industry to play a constructive role in the FSA’s consultation on our future funding. At the same time, we have a duty to compensate people with eligible claims. This helps to build consumer confidence and contributes to financial stability.
“Our indicative levy for 2011/12 reflects our commitment to providing the best possible service to consumers and the industry.”
The FSCS says a further levy will be announced in the summer to cover interest on Treasury loans made to support the failed institutions Bradford & Bingley, Heritable Bank, and Kaupthing Singer & Friedlander.
The FSCS says it is currently working out a repayment schedule with the Treasury, and once this is agreed will inform the industry as to when levies are due, how much they will be and on which class or sub-class they will fall.