FSCS scraps 2013/14 interim levy on investment advisers

The FSCS has scrapped the proposed £30m levy on investment intermediaries it was due to charge in the first quarter of this year.

But investment advisers will still be forced to pay for the collapse of Catalyst Investment Group and Fyshe Horton Finney in the full levy for the next financial year.

The compensation scheme said it expects compensation claims that would have triggered the interim levy to apply for 2014/15.

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Mark Neale, FSCS chief executive, said: “New information on the volume and timing of claims suggests we do not need to levy the industry for more money during 2013/14. That is good news for firms.

“We still expect claims relating to Catalyst Investment Group Limited during next year. So, we will update the industry when we have more information on what this change means for 2014/15 when we announce the levy in April.”

The scheme had previously flagged the likelihood of an interim levy bill in August, before proposing a £29.5m bill in November.

The FSCS began compensating clients of failed stockbroker Fyshe Horton Finney in August, but it delayed compensation payments to Catalyst clients in December due to “complications”.