Financial Conduct Authority  

Regulator wants firms that 'harm' to pay more towards FSCS

Chief executive of the FSCS, Caroline Rainbird, has expressed regret and understanding of how the levy affects the advice industry and pledged the body was doing all it could to prevent firms from failing and, in turn, lower the levy.

Charles Randall, chairman of the regulator, has previously suggested the system needed to be redesigned so "polluting firms" in the financial sector paid the bill for high risk and unsuitable investments, not "well-run firms" via the compensation scheme.

It echoed what many advisers have protested for a long time — that the ‘good guys always pay’.

Advisers also argue the FSCS fees levied on firms, alongside a hardening PI market, are making some advice businesses unviable.

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