Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a666178
FSCS cuts interim adviser levy to £20 million
by Michelle Abrego on Mar 15, 2013 at 14:37
The Financial Services Compensation Scheme (FSCS) has confirmed a £20 million interim levy for investment intermediaries, down from the previous estimate of £25 million for 2012/13.
The FSCS said that the interim levy would be necessary to pay for claims relating to on-going investment failures such as Pritchard Stockbrokers and Worldspreads for which the costs were not previously levied.
The FSCS originally signalled that a levy would be necessary for 2012/13 in November 2012 and said that it would be likely to hit £25 million in its plan and budget in February.
Advisers are also faced with a £76 million annual levy for 2013/14.
FSCS chief executive Mark Neale said: 'We have kept the potential costs and claims volumes in these two sectors under constant review. Although the scale of the levies has reduced, because of expected claims costs, the potential deficits still mean we need to raise these levies to ensure we meet our obligations to pay compensation to consumers.
'We recognise the impact these costs will have on firms and hope that our earlier warnings will have allowed firms to make some provision for the costs.'
The FSCS said that the Financial Services Authority would start sending out the invoices during the week of 18 March.
News sponsored by:
Subscribe to Wealth Manager to get the inside track on your rivals' moves
Keep up to date with how your peers are allocating their clients' assets by subscribing to Wealth Manager magazine.
Today's top headlines
More about this:
More from us
- Lawyers to challenge FSCS refusal to pay Rockingham claims
- FSCS hopes to recover £75m from Keydata battles
Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.
On the road
on May 21, 2013 at 14:06