The Financial Services Compensation Scheme (FSCS) has announced that its levy for 2015/16 will be £319 million. Admittedly this is £32 million more than the estimated levy that was projected by the FSCS in January 2015, when it consulted on its 2015/16 plan and budget. The reason is largely due to a rise in claims relating to self-invested personal pensions schemes.
Other developments include that:
- the general insurance intermediation sector will not be receiving a levy bill in 2015/16 for payment protection insurance claims, which have continued to decline;
- the FSCS expects to pay compensation costs totally £28 million for Alpari (UK) Limited in 2015/16; and
- investment intermediation firms will see a decrease in their levy bill, due to a fall in the costs relating to other investment defaults, and an expected increase in recovery forecasts for the coming year.
The FSCS has also published the latest issue of its newsletter, Outlook. The newsletter looks at the 2015/16 annual levy and also discusses, among other things, SIPP switching claims.
View FSCS: Outlook, 28 April 2015
View FSCS announces final levy for 2015/16 at £319m, 28 April 2015