View more on these topics

FSCS does U-turn on broker levy


The Financial Services Compensation Scheme has done a U-turn on its proposed levy for brokers for the coming year.

The £10m figure for home finance intermediaries, including mortgage brokers, was provisionally set out in January, although now it has revealed the levy will be just £6m. The levy was £5m in 2015/16.

The total 2016/17 FSCS levy on all financial firms will be £337m, down from a predicted £363m earlier this year but up 2015/16 where it was £319m.

The FSCS says the drop is due to lower forecast claims costs for the 2015/16 year.

FSCS managing expenses are budgeted for £67.4m in 2016/17 and the scheme will recover £337m of interest costs relating to Treasury loans to Bradford and Bingley and Kaupthing Singer & Friedlander made during the banking crisis in 2008.

FSCS chief executive Mark Neale says: “The annual levy allows us to compensate customers. That generates consumer confidence and trust in the industry.

 “We look forward to the forthcoming review by the Financial Conduct Authority into how FSCS is funded, and will play our part in discussions. I encourage the industry to play a full role in the debate.”



FSCS set to double mortgage broker levy

The Financial Services Compensation Scheme is set to double the levy on mortgage intermediaries from £5m to £10m for the 2016/17 year. The FSCS does not go into detail about the reason for the large hike, but says in its 2016 Plan and Budget report that it was seeing an increase in eligible claims against […]


FSCS eyes risk-based model in radical adviser levy overhaul

The model for the Financial Services Compensation Scheme levy could be radically redrawn as part of its 2016 funding review, chief executive Mark Neale says. Currently advice firms are charged on a pay-as-you-go basis which fluctuates depending on the level of compensation paid out to consumers. But speaking at the Money Marketing Brave New World […]


FSCS: We must raise awareness of compensation for poor advice

The Financial Services Compensation Scheme says greater awareness should be raised of compensation for poor advice. A report by the lifeboat scheme says it should work with the industry to raise awareness of compensation for poor advice in order to improve confidence in the sector. In a report on consumer trust in financial services published […]

Andrew Tyrie Tory conf 2013.jpg

Treasury committee demands answers on FSCS levy reform

Treasury committee chairman Andrew Tyrie has challenged the FCA’s smaller business practitioner panel to provide solutions to rocketing adviser bills for the Financial Services Compensation Scheme. Tyrie’s comments came after Citywide Financial Partners director Clinton Askew, who also chairs the FCA’s smaller business panel, said his own firm’s FSCS bill increased by 300 per cent […]

Guide cover resized

Guide: Johnson Fleming’s managed auto-enrolment service for SMEs

Johnson Fleming has launched its new managed auto-enrolment service, designed to support SME businesses of up to 250 employees. The managed auto-enrolment service is not just about providing businesses with a software system for them to manage themselves, but more about outsourcing the administration of the project and scheme to Johnson Fleming’s auto-enrolment staff.


News and expert analysis straight to your inbox

Sign up
  • Post a comment
  • Steven Balmer 26th April 2016 at 1:32 pm

    Costs are still escalating and shamefully unfair – whatever spin the FSCS tries to put on their extravagances.