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Tuesday, 21 January 2014 15:49
FSCS issues £107m levy on advisers
The Financial Services Compensation Scheme will issue a total levy of £313m across the financial services industry in 2014/15, with £107m of that coming from investment advisers.
The money to be clawed back from advisers has gone up from £78m in 2013/14, though an interim levy for the last three months of last year could push the total amount to £108m.
The figures were announced as part of the FSCS's budget for the forthcoming year.
The interim levy was created because the authority anticipated a potential £30m deficit on the investment intermediation class due to expected compensation costs from claims against Catalyst Investment Group and Fyshe Horton Finney.
The 2014/15 levy breakdown includes life and pensions intermediation, which is rising from £13m to £40m.
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Lawrence Churchill, FSCS chairman, said: "Our mission is to provide a responsive, well-understood and efficient compensation service for customers of financial services, which raises public confidence in the industry. This mission is central to our five year vision.
"People must be confident the money they commit to financial products or services is protected.
"And we know that confidence underpins financial stability."
The figures have been drawn up under the FSCS's new 36 month funding approach.
Last year's total levy across the whole industry was £285m.
The money to be clawed back from advisers has gone up from £78m in 2013/14, though an interim levy for the last three months of last year could push the total amount to £108m.
The figures were announced as part of the FSCS's budget for the forthcoming year.
The interim levy was created because the authority anticipated a potential £30m deficit on the investment intermediation class due to expected compensation costs from claims against Catalyst Investment Group and Fyshe Horton Finney.
The 2014/15 levy breakdown includes life and pensions intermediation, which is rising from £13m to £40m.
{desktop}{/desktop}{mobile}{/mobile}
Lawrence Churchill, FSCS chairman, said: "Our mission is to provide a responsive, well-understood and efficient compensation service for customers of financial services, which raises public confidence in the industry. This mission is central to our five year vision.
"People must be confident the money they commit to financial products or services is protected.
"And we know that confidence underpins financial stability."
The figures have been drawn up under the FSCS's new 36 month funding approach.
Last year's total levy across the whole industry was £285m.
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