'Who are these third parties?': Advisers question FCA’s audit proposals

He called the FCA’s plans “regulation with the benefit of hindsight”, and instead wants to see something more “forward thinking”.

Alan Knowles, managing director at high-risk protection-focused firm Cura Financial Services, told FTAdviser his firm will "be hugely affected by the FSCS levy" going forward, despite the fact his team works in the pure protection space - which falls under the general insurance class, rather than the LDII and Investment Provision funding classes.

He said: "We are set to see huge increases in the levy for general insurance and pure protection intermediaries, due to the overspill from the investments classes. But the work the FCA is proposing is mainly geared at investment firms.

"In the long run this should help protection intermediaries but not for a long time, after which the hikes may have already done their damage to many firms."

ruby.hinchliffe@ft.com, with additional reporting from sonia.rach@ft.com and amy.austin@ft.com