View more on these topics

First Complete and Pink urge brokers engage with FSCS consultation

First Complete and Pink today warn that mortgage and protection customers will be hit if advisers do not reply to a consultation paper on the Financial Services Compensation Scheme.

The Financial Conduct Authority’s consultation paper looks at changing how the FSCS is funded.

The funding structure has proved controversial to mortgage intermediaries as it leaves them exposed to large claims in non-mortgage areas pushing up their FSCS bills.

FSCS-Piggy-Bank-Alt-500x320.jpg

A statement by First Complete and Pink says levy increases could be passed down to customers in the form of higher prices and indirect service charges.

Both networks are urging advisers to reply to the consultation before it closes on 31 March.

First Complete and pink sales director Toni Smith says: “The FSCS’s life and pensions levy is drastically increasing the cost of doing business for mortgage businesses each year.

“Mortgage and protection intermediaries are having to factor in the cost of insuring pensions products – products they are not even licenced to sell – into their business models.

“With the number of pensions compensation claims forecast to rise, these costs will inevitably trickle down to customers.  Brokers therefore have a responsibility to engage with the FCA’s consultation paper to ensure that their customers don’t foot the FSCS bill.”

Recommended

Money-Cash-Coins-GBP-Pounds-UK-700x450.jpg

TMA members hit out at ‘unfair’ FSCS levies

Almost all TMA Mortgage Club members are unhappy with how the Financial Services Compensation Scheme is funded and do not believe the Financial Conduct Authority offers a viable alternative, according to a survey. The club polled its directly-authorised members and found that 93 per cent believe the current FSCS levy is unfair to brokers and […]

David-Copland-700x450.jpg
1

Comment: Time for a separation of powers with FSCS

The FCA must split the life and pension pot; it is unfair that mortgage brokers have to pay to compensate pensions The Financial Services Compensation Scheme life and pensions levy is to mortgage intermediaries what last year’s cruciate ligament knee injury was to West Brom footballer Chris Brunt: crippling and unfair. However, just as Brunt […]

Piggy-Bank-Savings-UK-700x450.jpg
1

FCA: ‘No obvious solution’ to FSCS reform

The FCA has said that there is “no obvious solution” that will please all parties on Financial Services Compensation Scheme funding as it appeals for advisers and the wider industry to reply to its ongoing consultation. In a special edition of its ‘Regulation Round-Up’ series, the regulator highlights a number of areas it is focusing […]

The return of inflation

Alex Ralph, manager of the Artemis High Income Fund, sees further pressure on government bonds as inflationary pressures build on both sides of the Atlantic.

Newsletter

News and expert analysis straight to your inbox

Sign up