FSCS levy: £56m of levies to be recalculated
FSCS reveals details of how revisions are being made to levy calculations following resubmitted data.
Some advisers and fund managers who resubmitted levy data to the FSCS are in line for rebates, but at a cost to other firms in their subclass, the FSCS has said.
Advisers and fund managers last year resent data relating to how much investment business they wrote, a key element of their levy calculations.
A total of £86m of the 2010/11 annual and interim levy was submitted by advisers and fund managers to be recalculated, with £56m of payments being accepted as incorrect by the FSCS.
The FSA has started issuing credit notes to those who are due a refund, with an estimated £1.9m to be paid back to advisers and £52.7m to be paid back to fund managers.
The FSCS said it is now £20.7m down on its 2010-11 total levy, meaning investment advisers will have to pay out another £3.3m to cover the shortfall, on top of this year’s annual levy.
The shortfalls are not as severe as they could be because the FSCS also recovered £35.3m from pursuing advisers that sold failed investments in large volumes including Norwich & Peterborough Building Society.
The FSCS said: “Clearly, the net amounts that individual firms could need to pay in any further such levying exercise would vary depending on their individual situation and the positions of specific firms could differ widely.”