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Investment advisers see a rise in annual FSCS levy to £78m

FSCS-office-alternative-2013

The Financial Services Compensation Scheme has set the final levy for investment advisers at £78m for 2013/14 – up from the earlier estimate of £76m.

The increase in the investment adviser annual levy comes despite the overall FSCS levy falling 8 per cent from an indicative levy of £311m to a final levy of £285m. 

Investment advisers are the only funding class to see their levy increase over the indicative numbers published in February.

The £78m annual levy for 2013/14 comes on top of a £20m interim levy on investment advisers for 2012/13.

Life and pensions advisers have seen their annual levy fall 24 per cent from an indicative £17m to a final £13m. Fund managers are not being levied for 2013/14.

FSCS chief executive Mark Neale says: “We are aware of the impact that our levies have on firms. 

“In particular, we are mindful of the fact that, in addition to this levy, firms in the investment and insurance intermediation classes recently received invoices in respect of the interim levy we announced in March.”

Firms will be invoiced for the annual FSCS levy in July.

Appleton Gerrard chartered and certified financial planner Kusal Ariyawansa says: “It is disheartening to see the levy increase again. 

“It is outrageous and appalling that I have to pay for other peoples’ failures.”

FSCS levy figures  

Funding classes

2013/14  final levy 

(£m)

2013/14 indicative levy

(£m)

Variance

Deposits (SA01)

7

11

(4)

General insurance provision (SB01) 

115

122

(7)

General insurance
intermediation (SB02)

54

58

(4)

Life and pensions provision (SC01) 

––––

––––

––––

Life and pensions
intermediation (SC02)

13

17

(4)

Investment fund
management (SD01) 

––––

––––

––––

Investment inter-mediation (SD02) 

78

76

2

Home finance
provision (SE01) 

––––

––––

––––

Home finance intermediation (SE02) 

––––

––––

––––

Base costs

18

27

(9)

Total

285

311

(26)

Source: FSCS

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