IFA firms Millfield and Inter-Alliance have paid more than £2m to the FSA this year, including £840,000 to the Financial Services Compensation Scheme.
Millfield chief executive Paul Tebbutt has revealed that the firms were faced with a 500 per cent increase in their FSCS levy.
Of the £840,000 that the group handed over to the compensation scheme, £348,000 was for Millfield. Last year it paid just £55,000.
Tebbutt says that both firms have paid their fees but are unhappy with the way that regulators have dealt with the situation. He believes that while firms were able to calculate roughly how much they would have to pay for their RIs, the increase came as a surprise even to big firms.
He believes that distributors rather than product providers have been lumbered with the FSCS levy and is calling for a deal to be struck with regulators.
Tebbutt says: “I hear the FSA saying that they will remove the authorisation from people that do not pay. Is this good for the industry? Who does it benefit to have loads of closed IFA firms? Not consumers and not providers.”