The Financial Services Compensation Scheme (FSCS) has blamed potential claims from the London Capital & Finance (LCF) mini-bond scandal for an additional £44m cost in its £649m 2020/21 budget.

The Financial Services Compensation Scheme has declared 30 failed regulated firms in default between 1 November and 31 January 2020, opening the door to compensation claims.

The Personal Finance Society is urging its 40,000 members - hit by a double whammy of soaring Professional Indemnity premiums and escalating Financial Services Compensation Scheme levies - to lobby their local MP for change.

Wealth manager trade body PIMFA has branded the FSCS’s budgeted levy for 2020/21 of £635m as “totally unsustainable” and says the levy must be reformed.