Rowanmoor Pensions says it will not pass on the cost of the FSCS interim levy to clients.
The Sipp and Ssas provider says it will continue to absorb the charge as a business expense despite “exceptional compensation claims” forcing the FSCS to impose an interim levy on regulated firms. James Hay Partnership recently wrote to customers saying the costs of the levy could be passed on.
Suffolk Life head of marketing Greg Kingston says the levy could force Sipp providers and administrators to merge. He says: “Considering the current economic environment and regulatory and financial strains being placed on firms, consolidation across the Sipp market is now more likely than ever before.”
The £93m interim levy imposed by the FSCS in January includes compensation costs of £86m, mainly to compensate Lifemark investors, and management expenses of £7m.