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FSCS £40m interim levy: What you are paying for
Advisers are facing at least a £40m levy in early 2012, after the Financial Services Compensation Scheme (FSCS) has paid more compensation than it expected.
• Others
Although other levy subclasses do not impact the levy paid by investment advisers, the FSCS has noted a 60 per cent increase in the amount of claims related to the misselling of payment protection insurance. The scheme said 16,600 of 27,800 claims against Welcome Financial Services - now in default - have been upheld, paying out £27.8m, although the firm has been able to meet these costs so far.
There is also a risk of a deficit - and therefore a potential levy - in the home finance intermediation sector following a “substantial increase” in the number of claims against mortgage brokers and advisers.
