View more on these topics

FSCS details 2019/20 levy distribution

The Financial Services Compensation Scheme has outlined how its levy will be distributed across firms in 2019/20.

Of the 46,000 firms to pay the body over half – 59 per cent – will contribute less than £50.

Over 4,500 firms will not pay any levy, according to FSCS, and will receive an average rebate of £139.

In contrast, the top 110 firms, 0.2 per cent, will pay an average of £3m. Representing 61 per cent of the total levy bill.

The FSCS states that this data is a prediction for 2019/20 and may need to raise additional levies.

FSCS chief executive Caroline Rainbird says: “We do not take for granted the impact of our levy, as we recognise it can be a significant and unwelcome expense for many firms.

“The levy enables FSCS to protect thousands of people each year who have nowhere else to turn when financial service firms fail.

“To reduce costs to levy payers we pursue recoveries from the estates of failed firms, and in 2018/19 we recovered £26m.

“We also believe that our strategy, focuses on four pillars, prepare, protect, promote and prevent.

“As we continue to see a rise in SIPP related claims, we are working with our partners in industry through our prevent pillar to gain valuable insight into the causes of firm failures and about the directors and advisers involved in mis-selling.”



FSCS sees rise in spurious mis-selling claims against brokers

The Financial Services Compensation Scheme says that it is seeing a growing number of spurious mis-selling claims against mortgage brokers. Announcing its budget and levies for 2019/20, the lifeboat scheme revealed that the funding it is seeking from mortgage advisers and lenders will remain unchanged on the previous financial period at £1m and £4m respectively. […]


FSCS: Recoveries totalling £300m have cut industry levy

The Financial Services Compensation Scheme has recovered just under £300m from failed financial services firms since 2014. The FSCS says the recovered funds have significantly reduced what advisers could have paid, despite the new £69m levy announced for this year last November. In January the FSCS confirmed that mortgage brokers would pay £4m for 2019/20. […]


FSCS declares four firms in default

The Financial Services Compensation Scheme has listed four financial services firms as insolvent during January. Three of these were financial advisers and one a mortgage adviser. The companies were the Mortgage Matters Partnership, based in Cheshire, Montpelier Group Limited, based in the West Midlands, and Balfour Group Limited and Allan McRoberts, based in Edinburgh and […]


Mortgage adviser FCA levy upped 4%

Mortgage intermediary fees to the FCA will rise 4 per cent, it has been confirmed. In total, the regulator will be looking to raise £17.6m in 2019/20, up from the £16.9m collected in 2018/19. Furthermore, home finance providers and administrators will see their fees rise by 4.1 per cent, with the FCA aiming to harvest […]


News and expert analysis straight to your inbox

Sign up