The Financial Services Compensation Scheme (FSCS) has published the April 2014 issue of its newsletter, Outlook, in which it announces that its levy for 2014/15 will be £276 million. Admittedly this is £37 million less than the estimated levy of £313m that was projected by the FSCS in January 2014, when it consulted on its 2014/15 plan and budget. The reason for this, is that payment protection insurance claims reached a plateau in 2013/14 and are now more than likely on a downward trend.
Other developments include fund managers will receive a rebate from the FSCS as a result of successful recoveries relating to the failure of Keydata. Only investment intermediaries and home finance intermediation will see their final levies increase. General insurance companies are also benefiting from higher than forecast recoveries, which means their final levy has been reduced.
The newsletter also contains the following:
- key components of the annual levy;
- compensation costs;
- management expenses;
- 2008/09 major bank failure loan cost update; and
- a policy section, referring to the proposed Deposit Guarantee Schemes Directive (recast) and its likely impact on the FSCS.
View FSCS: Outlook, 15 April 2014
View FSCS announces final levy for 2014/15 – down £37m on initial projection, 15 April 2014