IFAs mount scathing attack on FSCS levy
Advisers have backed IFA Carl Lamb’s outspoken criticism of soaring regulatory fees, which he said were stifling innovation and preventing firms from investing in their future.
Chris Budd, managing director of Bristol-based Ovation Finance, said: “I completely agree with Mr Lamb. I have also put back expansion plans due to the increased Financial Services Compensation Scheme levy.”
Ovation’s 280 per cent increase in fees, mainly due to the FSCS levy, meant the firm had to scrap the launch of a new service and put back recruitment of a member of staff by six months.
Mr Budd said: “The funding of the FSCS means I am responsible for something I have no control over.
“My local golf club lost 20 per cent of its members last year. As a result it divided its costs by the new number of members and put fees up by 20 per cent. The result was more people left the club because they couldn’t afford it. The FSCS seems to be following the same principle.”
Mr Lamb, managing director of Norfolk-based IFA firm Almary Green, had spoken out against the increases of levy after he saw his firm’s latest FSA invoice increase by 63 per cent.
Commenting on the article, an online reader calling himself Old Dog said: “I can’t think of another profession where one is so disincentivised to recruit and expand.
“For years I’ve liked to take on three or four advisers and one admin person, but I’ve looked at the regulatory risk and compliance burden and thought I’d rather put my hand in a bacon slicer.”