Panacea poll seeks IFA opinion on FSCS levy
PanaceaIFA has launched a survey on IFA attitudes to the levy for the Financial Services Compensation Scheme, Derek Bradley has said.
The chief executive of the online resource for directly-regulated advisory firms said the levy was one of the most “contentious” issues facing adviser firms.
He added: “There seems to be much mystery surrounding the unfairness and the unintended consequences of ever-increasing cash calls on adviser firms.”
The survey can be found online and will close on 3 August. The findings will be presented to the Treasury select committee, the Association of IFAs, the FSA and FSCS.
Mr Bradley said: “We wanted to find out more about the IFA perception of the scheme – how fair it is seen to be, how easy it is to provide data, whether the levy amount should form part of client disclosure, whether there should be more transparency surrounding how the levy is calculated and what alternatives there could be.”
Mr Bradley added that the levy was increasing inflation within the IFA industry, with the higher costs leading to more defaults that then had to be funded by further levies.
He said: “The costs are growing and the ability to pay reducing with fewer firms funding bigger calls.”
Mark Bex, owner of Cheshire-based MRB Financial Management, said: “The current levies will certainly put people out of business unless something is done. It’s difficult to know where to go with the current regime.
“A lot of IFAs are in the same boat as me and questioning the viability of their businesses in the future. I just received my bill and it was higher than expected.”
Phil Shaw, principal of Northumberland-based PCM Asset Management, said: “I stated a few months ago that the biggest risk to my business was the unknown quantity that is the FSCS levies. The unknown has just been clarified, as I received today the annual FSA invoice, including a 66 per cent increase in the annual FSCS levy. Brilliant.”