Advisers face another FSCS bill for £38.3m to cover the cost of compensating CF Arch cru investors.
The news comes weeks after investment intermediaries were invoiced for their share of the £60m interim levy for 2011/12, which came on top of an annual £34m levy. For 2012/13, the FSCS had estimated an annual levy for investment intermediaries of £33m to cover claims relating to Keydata, Wills and Co and Arch cru.
But having sought external advice on the value of the Arch cru funds and deciding how to compensate claims against advisers that are no longer trading, the FSCS says compensation costs for Arch cru will be higher than originally expected. The levy will fall on life and pensions and investment advisers.
The FSCS says it will make interim payments to investors now, with top-up payments where necessary when the funds have been wound down, which is likely to be in 2015.