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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.”

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