View the article online at http://citywire.co.uk/wealth-manager/article/a653166
Wealth execs demand FSCS cost clarity as thresholds change
by Danielle Levy on Jan 29, 2013 at 09:47
A senior director at Rathbones is also calling for clarity on the potential impact of the fund exemption for the investment fund management sub-class looking ahead, but also welcomes potential cross-subsidisation.
‘One hopes that with greater regulation this won’t be tested at very high loss levels again. If this is the case it impacts affordability levels,’ he added.
Nick Holmes, joint-managing director at Brooks Macdonald Asset Management, expects that Brooks will end up with higher contributions to the scheme as the proposals stand. Last year the firm contributed £250,000 inclusive of interim levies to the scheme.
'It is clear that the industry remains confused about the best way to fund the levy, and of course no-one wants to pay more, and everyone is looking at less. Particularly loud are those who feel that they end up on the hook for others' failings, whilst having robust internal procedures to prevent those failings being likely to fall on their own doorstep.
'That being said, it is important that the consumer can be comfortable that the money is there, and I suspect it will always be the case that the larger, faster growing businesses will end up picking up more of the tab. However, it is important for all businesses that this is both predictable and manageable,' Holmes added.
He also welcomes the FSA consultation on cross-subsidisation between FCA and PRA pools, but suggests the alternative of a product levy could have some merit as an alternative to current proposals.
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