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.

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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.”