The Financial Services Compensation Scheme will significantly reduce the levy it charges on the advisory sector, due to the falling number of claims against failed firms.
The forecast for next year has published today by the FSCS today. The announcement has been widely welcomed by those across the industry, including Pimfa, the trade body for wealth management, investment services and financial advice sector.
Pimfa head of public affairs Simon Harrington says: “The forecasted FSCS levy for the coming year represents significant and welcome downward movement, which will come as a relief to firms in an environment where other costs, which they have no control over, continue to rise.
“We welcome this news and hope that this is representative of future Levy forecasts whereby failed firms are wound up in an orderly manner and at no cost to the wider industry. First and foremost however, it is a source of contentment that a significantly lower levy represents significantly lower instances of poor outcomes to consumers.”