Wealth Manager - Essential news for investment professionals

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

FSCS cuts 2014/15 levy by £37m - but ups bill for wealth managers

FSCS cuts 2014/15 levy by £37m - but ups bill for wealth managers

The Financial Services Compensation Scheme has reduced the 2014/15 annual levy by £37 million – except for private client managers and financial advisers, who will see their bill for the year rise.

Announcing the change from its earlier estimate, the FSCS said it was able to reduce the headline amount due to lower claims volume as payment protection insurance mis-selling claims peaked.

The only exception to the rule was investment intermediaries and home finance intermediaries, who will have to stump up £112 million for the year – a £7 million increase on earlier estimates.

‘Compared to earlier estimates, the levy bills for most industry sectors fall,’ the FSCS said in a statement. ‘And fund managers will receive a rebate from FSCS as a result of successful recoveries by the scheme relating to the failure of Keydata.

‘Lower claims volumes are helping to contain the costs to firms in the coming year. In particular, FSCS now tentatively believes that PPI claims may have peaked last year and be set on a downward trend.

‘This reduction in claims means a much lower bill for insurance intermediaries. However, the volume of claims seems fluid and unpredictable, so FSCS is taking a cautious approach and reducing the levy as a prudent precaution.

The FSCS had originally estimated a £313 million levy across the financial services industry for the year. Following the revision that has now fallen to £276 million.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter