At a Westminster Hall debate in Parliament on Tuesday, MPs called for the Government to reassess the burden of FSCS levies on building societies. But Tory Shadow Treasury Financial Secretary Mark Hoban added that the issue of IFA levies needed to be looked at as well.
He said: “The funding mechanisms on the financial sector are coming under particular strain, and not just on building societies. IFAs also have concerns about how much they bear.”
Hoban used the case of IFAs having to pick up a £40m bill after the FSA shut stockbroker Pacific Continental Securities. “Mutuals are not alone,” he said.
Aifa director general Chris Cummings says this is the first of many pleas for IFAs that will be heard in Westminster. He says: “Aifa has been talking to Mark Hoban a great deal about FSCS levies and the structure of regulation, so we are delighted to see he is taking it to Parliament and speaking on our behalf.
“It has been the big players in the financial sector who have lobbied hardest and had the loudest voices. But Aifa has proved that, by uniting together, IFAs do have a voice and can shape regulation how we want it to be shaped. It is very important that the IFA community is able to say how regulation moves foward.”
On the effect of FSCS levies on building societies, LibDem MP Willie Rennie said: “I am genuinely puzzled why we have not got a better balance between value and risk. Surely, we have learned something over the last 18 months?”