Thursday, 27 February 2014 11:19
Advisers escape £30m FSCS levy – for now
The Financial Services Compensation Scheme has scrapped a planned £30m interim levy on advisers for 2013/14 – at least for the time being.
The organisation will not claw back the money during this financial year after updating its assessments on costs but it is likely to be added to next year's levy instead.
A total of £313m will be clawed back from the financial services industry next year, with £107m coming from advisers.
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Melony Holman CFPCM, chair of the membership committee at the IFP, criticised the amount recently, saying it was the last thing Financial Planners need.
An FSCS review of claims found costs will be lower in current year than its Budget 2014/15 – and has therefore removed the £30m for this year.
The money was needed, the FSCS previously said, due to an expected increase in compensation costs resulting from claims against Catalyst Investment Group Limited and Fyshe Horton Finney Limited.
Mark Neale, FSCS chief executive, said: "New information on the volume and timing of claims suggests we do not need to levy the industry for more money during 2013/14.
"That is good news for firms. We still expect claims relating to Catalyst Investment Group Limited during next year. So, we will update the industry when we have more information on what this change means for 2014/15 when we announce the levy in April."
The organisation will not claw back the money during this financial year after updating its assessments on costs but it is likely to be added to next year's levy instead.
A total of £313m will be clawed back from the financial services industry next year, with £107m coming from advisers.
{desktop}{/desktop}{mobile}{/mobile}
Melony Holman CFPCM, chair of the membership committee at the IFP, criticised the amount recently, saying it was the last thing Financial Planners need.
An FSCS review of claims found costs will be lower in current year than its Budget 2014/15 – and has therefore removed the £30m for this year.
The money was needed, the FSCS previously said, due to an expected increase in compensation costs resulting from claims against Catalyst Investment Group Limited and Fyshe Horton Finney Limited.
Mark Neale, FSCS chief executive, said: "New information on the volume and timing of claims suggests we do not need to levy the industry for more money during 2013/14.
"That is good news for firms. We still expect claims relating to Catalyst Investment Group Limited during next year. So, we will update the industry when we have more information on what this change means for 2014/15 when we announce the levy in April."
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